HG 

4941 
H5 


UC-NRLF 

I  III' 


$C    3b    SD? 


YH  0016" 


BONDS 

OF  THE   GOVERNMENT  OF  THE 

UIVITED   STATES   OF  AJMERICA 


W.  B.  HiBBs  AND  Company 

If 

HIBBS    BUILDING 
WASHINGTON.   D.  C. 


COPYRISHTED.     19IO.     BY     W.     B.      HiBBS     AND     COMPANY,     WASHINGTON.      D.     C. 


Frederic  jl. 


,^ i- UNITED  ST ATFS 


LOAN 


DATED 


4%   LOAN  OF   1925 


February  1,  1895 


2%  CONSOLS  OF  1930 


[Page  One] 


After  February  1,  1925, 
"at  the  pleasure  of 
the  United  States." 


April  1,  1900 


RATE   OF 
INTEREST 


After  April  1,  1930,  "at 
the  pleasure  of  the 
United  States,"  upon 
three  months'  notice. 


4% 


2% 


PRE-WAR 


INTEREST    PAYABL 


February  1st, 
May  1st, 
August  1st,  anc 
November  1st 


January   1st, 
April  1st, 
July  1st  and 
October  1st. 


i 


OF  AMERICA 

ISSUES 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


)n  July  31,  1920, 
$118,489,900,  out  of  a 
total  issue  of 
$162,315,400 


)n  July  31,  1920, 
$599,724,050,  out  of  a 
total  issue  of 
$646,250,150 


I 


Par 


Par 


The  "bonds  and  the 
interest  thereon 
shall  be  exempt 
from  the  pa}mient 
of  all  taxes  or 
duties  of  the  United 
States,  as  well  as 
from  taxation  in 
any  form  by  or 
under  State,  mu- 
nicipal, or  local  au- 
thority."— Act  of 
Congress  approved 
July  14,  1870  (16 
United  States  Stat- 
utes at  Large,  272). 


These  bonds  are  "ex- 
empt from  the  pay- 
ment of  all  taxes 
or     duties     of    the 

,  United  States,  as 
well  as  from  taxa- 
tion in  any  form 
by  or  under  State, 
municipail,  or  local 
authority." — Act  of 
Congress  approved 
March  14,  1900 
(31  United  States 
Statutes  at  Large, 
46). 


This  loan,  issued  under  autliority  of  the  Acts  of  Congress  approved 
July  14,  1870,  and  January  14,  1875,  was  for  the  purpose  of 
replenishing  the  depleted  gold  reserve  of  the  Treasury  and  was 
emitted  in  two  installments,  viz.:  (1)  $62,315,400  par  value  of 
4%  bonds,  dated  February  1,  1895,  and  redeemable  at  the 
pleasure  of  the  United  States,  "thirty  years  from  that  date," 
which  bonds  were  sold  to  "the  parties  to  a  contract"  executed 
on  February  8,  1895  (i.  e.,  a  syndicate  of  New  Yorii  bankers 
headed  by  J.  P.  Morgan  &  Company  and  August  Belmont  & 
Company)  in  payment  for  3,500,000  ounces  of  gold;  and  (2) 
$100,000,000  par  value  of  the  same  issue  of  4%  bonds,  which  were 
offered  for  public  subscription  from  January  6  to'  February 
5,  1896.  In  the  case  of  this  second  instalment — of  which  J.  P. 
Morgan  &  Company  and  their  associates  (the  National  City 
Bank  of  New  York,  Harvey  Fisk  &  Sons  and  the  Deutsche 
Bank  of  Berlin)  were  allotted  $37,915,850  of  bonds  at  a  price  of 
110.6877,  and  W.  B.  Hibbs  &  Company  $500,000  at  110.76  and 
111.015— the  coupons  maturing  on  or  before  February  1,  1896, 
were  detached  and  the  bidders  to  whom  the  bonds  were  awarded 
were  required  to  pay  for  them,  as  well  as  "all  interest  accrued 
thereon  after  the  first  day  of  February,  1896,  up  to  the  time 
of  payment,"  in  United  States  gold  coin  or  gold  certificates. 

The  4%  Loan  of  1925  was  issued  in  two  forms  only:  (1)  Coupon 
bonds  to  bearer,  in  denominations  of  $50,  $100,  $500  and  $1,000, 
which  are  exchangeable  for  registered  bonds;  and  (2)  Registered 
bonds — principal  and  interest — in  denominations  of  $50,  $100, 
$500,  $1,000,  $5,000  and  $10,000,  which  are  not  exchangeable  for 
coupon  bonds   to  bearer. 

The  Transfer  Agent  is  the  office  of  the  Secretary  of  the  Treasury, 
Washington.  The  transfer  books  are  closed  each  year  from 
January  15th  to  February  1st,  April  15th  to  May  1st,  July  15th 
to  August  1st  and  from  October  15th  to  November  1st,  all 
inclusive. 

The  bonds  of  this  loan  are  receivable  as  security  for  the  issue  of 
circulating  notes  by  National  Banks  and  Federal  Reserve  Banks, 
but  are  subject  to  a  circulation  tax  of  one  per  cent.  They  are 
also  accepted,  like  all  other  United  States  bonds,  at  par  as 
security   for  Postal   Savings  deposits. 


Authorized  under  the  Act  of  March  14,  1900,  for  the  purpose  of 
retiring  United  States  5%  bonds  issued  under  the  Act  of  Janu- 
ary 14,  1875,  4%  Consols  of  1907  issued  under  .the  Acts  of  July 
14,  1870,  and  January  20,  1871,  and  3%  bonds  of  1908  issued 
under  the  Act  of  June  13,  1898. 

(1)  Coupon  bonds  to  bearer  in  denominations  of  $50,  $100,  $500  and 
$1,000;  and  (2)  Registered  bonds — principal  and  interest — in 
denominations  of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000  and 
$50,000. 

Coupon  bonds  are  exchangeable  for  registered  bonds,  but  registered 
bonds  are  not  exchangeable  for  coupon  bonds. 

This  was  the  first  loan  in  which  the  Government  specified  that  both 
principal  and  interest  shall  be  paid  in  United  States  gold  coin. 
The  bonds  are  payable  "at  the  pleasure  of  the  United  States 
after  thirty  years  from  the  date  of  their  issue"  "and  when  pay- 
ment is  made  the  last  numbers  issued  shall  be  paid  first." 

The  office  of  the  Secretary  of  the  Treasury  is  the  Transfer  Agent, 
and  the  transfer  books  are  closed  during  the  months  of  March, 
June,  September  and  December  of  each  year. 

The  2%  Consols  of  1930  are  receivable  as  security  for  deposits  of 
public  money  and  for  Postal  Savings  deposits.  They  are  also 
available  to  National  and  Federal  Reserve  Banks  as  security 
for   the   issue   of   circulating   notes. 


444174 


LOAN 


PANAMA  CANAL  LOAN  in  three 

maturities : 

(1)  SERIES  OF  1916-1936 


DATED 


MATURITY 


August  1,  1906 


(2)  SERIES  OF  1918-1938 


(3)  SERIES  OF  1961 


[Page  Two] 


November  1, 


August  1,  1936.  Re- 
deemable after  August 
1,  1916,  "at  the  pleas- 
ure of  the  United 
States." 


1908 


June  1,  1911 


November  1,  1838.  Re- 
deemable after  No- 
vember 1,  1918,  "at 
the  pleasure  of  the 
United  States." 


June  1,  1961.  Not  re- 
deemable before  ma- 
turity. 


RATE   OF 
INTEREST 


2% 


2% 


3% 


f 

PRE-WAI 


INTEREST    PAYABl 


February  1st, 
May   1st, 
August   1st  an 
November  1st 


February  1st, 
May   1st, 
August  1st  an 
November  1st 


March  1st, 
June  1st, 
September  1st 

and 
December  1st. 


ISSUES  (Continued) 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


On  July  31,  1920,- 
$48,954,180,  out  of  a 
total  issue  of 
$54,631,980 


Par 


On  July  31,  1920, 
$25,947,400,    out 
total  issue  of 
$30,000,000 


of  a 


Par 


On  July  31,  1920, 

$50,000,000,  which 
was  the  total  amount 
issued. 


Par 


"Exempt  from  all 
taxes  or  duties  of 
the  United  States, 
as  well  as  from 
taxation  in  any 
form  by  or  under 
State,  municipal,  or 
local  authority." — 
Act  of  Congress  ap- 
proved June  28, 
1902  (32  United 
States  Statutes  at 
Large,  484). 


"Exempt  from  all 
taxes  or  duties  of 
the  United  States, 
as  well  as  from 
taxation  in  ,  any 
form  by  or  under 
State,  municipal,  or 
local  authority." — 
Act  of  Congress  ap- 
proved June  28, 
1902  (32  United 
States  Statutes  at 
Large,  484). 

"Exempt  from  all 
taxes  or  duties  of 
the  United  States, 
as  well  as  from  tax- 
ation in  any  form 
by  or  under  State, 
municipal,  or  local 
authority." — Act  of 
Congress  approved 
August  5,  1909  (36 
United  States  Stat- 
utes at  Large,  117). 


The  Panama  Canal  Loan,  Series  of  1916-1936,  was  authorized  by 
Section  8  of  the  Act  of  Congress  approved  June  28,  1902,  supple- 
mented by  Section  one  of  the  Act  of  December  21,  1905,  for  the 
purpose  of  defraying  the  cost  of  construction  of  the  Panama 
Canal.  It  was  issued  in  two  installments,  viz.:  (1)  $30,000,000 
par  value  of  2%  bonds,  which  were  offered  for  public  subscrip- 
tion from  July  2  to  July  20,  1906;  and  (2)  $50,000,000  par 
value  of  the  same  series  of  2%  bonds  offered  from  November 
18  to  November  30,  1907. 

This  Series  of  1916-1936  is  in  two  forms  only:  (a)  Coupon  bonds 
to  bearer,  in  denominations  of  $20,  $100  and  $1,000;  and  (b) 
Registered  bonds — principal  and  interest — in  denominations  of 
$20,  $100,  $1,000  and  $10,000. 

Coupon  bonds  are  exchangeable  for  registered  bonds,  but  registered 
bonds  are  not  exchangeable  for  coupon  bonds. 

The  Transfer  Agent  is  the  Office  of  the  Secretary  of  the  Treasury, 
Washington.  The  transfer  books  are  closed  each  year  from 
January  15th  to  February  1st,  April  15th  to  May  1st,  July  15th 
to  August  1st  and  October  15th  to  November  1st. 

These  bonds  are  "available  to  national  banks  as  security  for  cir- 
culating notes  upon  the  same  terms  as  the  2  per  cent  consols 
of  1930,  to  wit:  The  semiannual  tax  upon  circulating  notes 
based  upon  the  said  bonds  as  security,  will  be  one-fourth  of 
one  per  centum.  They  will  be  receivable,  like  all  other  United 
States  bonds,  as  security  for  public  deposits  in  national  banks" 
and  in  Federal  Reserve  banks,  as  well  as  security  for  Postal 
Savings  deposits. 

The  Panama  Canal  Loan,  Series  of  1918-1938,  to  the  amount  of 
$30,000,000  par  value  of  2%  bonds,  was  issued  under  authority 
of  Section  8  of  the  Act  of  Congress  approved  June  28,  1902, 
supplemented  by  Section  one  of  the  Act  of  December  21,  1905, 
and  was  offered  for  public  subscription  from  November  18 
to  December  5,  1908. 

The  forms  of  the  bonds  and  their  denominations,  the  Transfer 
Agent,  the  dates  when  the  transfer  books  are  closed  each  year, 
the  availability  of  the  bonds  to  National  and  Federal  Reserve 
Banks  as  security  for  the  issue  of  circulating  notes,  as  well  as 
for  the  deposit  of  public  money  and  for  Postal  Savings  deposits, 
are  the  same  as  in  the  case  of  the  Panama  Canal  Loan,  Series 
of  1916-1936. 


I'nder  the  authority  conferred  by  Section  39  of  the  Act  of  Congress 
approved  August  5,  1909,  supplemented  by  the  Acts  of  February 
4,  1910,  and  March  2,  1911,  $50,000,000  par  value  of  the  bonds  of 
the  Panama  Canal  Loan,  Series  of  1961,  bearing  interest  at  the 
rate  of  3%  per  annum,  were  offered  for  public  subscription  from 
May  16  to  June  17,  1911. 

This  series  was  issued  in  two  forms  only:  (1)  Coupon  bonds  to 
bearer;  and  (2)  Registered  bonds — principal  and  interest — both 
in  denominations  of  $100,  $500  and  $1,000. 

The  principal  is  due  on  June  1,  1961,  but  the  bonds  contain  no  men- 
tion of  any  right  of  redemption  prior  to  that  date. 

The  transfer  books  for  this  series  are  closed  each  year  from  Febru- 
ary 15th  to  March  1st,  May  15th  to  June  1st,  August  15th  to 
September  1st  and  November  15th  to  December  1st. 

The  bonds  of  this  Series  of  1961  "will  not  be  available  to  national 
banks  as  security  for  circulating  notes,  but  they  will  be  receiv- 
able, like  other  United  States  bonds,  as  security  for  public  de- 
posits in  national  banks"  and  Federal  Reserve  Banks,  as  well  as 
for  Postal  'Savings  deposits. 


PRE-WAR 


LOAN 


THREE  PER  CENT  CONVERSION 
BONDS 


FIRST  LIBERTY  LOAN,  now  con- 
sisting of  four  issues: 
(1)     FIRST     LIBERTY     LOAN, 

3H%  Gold  Bonds  of  1932-1947. 


DATED 


January  1,  1916, 

and 
January  1,  1917. 


June  15,  1917 


(2)  Three  conversions  of  the  First 
Liberty  Loan.     Vide  pages  6  and  7. 


[Page  Three] 


MATURITY 


Thirty  years  from   the 
date  of  issue. 


June  15,  1^47.  Redeem- 
able, in  whole  or  in 
part,  at  par  and  ac- 
crued interest,  on  any 
interest  date  on,  or 
after  June  15,  1932, 
upon  three  months' 
published  notice. 


3% 


3^% 


INTEREST    PAYABL 


January  1st, 
April  1st, 
July  1st  and 
October  1st. 


WAR 


June  15th  and 
December  15th 


ISSUES  (Continued) 


AMOUNT  OUTSTANDING 


ijOn  July  30,  1920, 

$28,894,500,  which 
was  the  total  amount 
issued. 


Price  at 
Which 
Issued 


Par 


.OANS 


Dn  February  29,  1920, 
$1,410,074,400  out  of 
an  original  issue  of 
$1,989,456,650,  the 
balance  having  been 
converted  into  subse- 
quent Liberty  Loans 


» 


1 


Par 


EXEMPTION 


'Exempt  as  to  prin- 
cipal and  interest 
from  the  payment 
of  all  taxes  and 
duties  of  the  United 
States  as  well  as 
taxes  in  any  form 
by  or  under  State, 
municipal,  or  local 
authority."  —  E  x  - 
cerpt  from  the 
statement  on  the 
face  of  a  3%  Con- 
version bond. 


"Exempt,  both  as  to 
principal  and  inter- 
est, from  all  taxa- 
tion, except  estate 
or  inheritance 

taxes,  imposed  by 
authority  of  the 
United  States,  or  its 
possessions,  or  by 
any  State,  or  local 
taxing  authority." 
— Act  of  Congress 
approved  April  24, 
1917  (40  United 
States  Statutes  at 
Large,  35). 

1 


REMARKS 


Section  18  of  the  Federal  Reserve  Act,  approved  December  23, 
1913,  authorized  the  issue  of  (1)  One-year  Treasury  notes  and 
(2)  Three  per  cent  Conversion  Bonds  for  the  purpose  of  per- 
mitting any  F"ederal  Reserve  Bank  to  retire,  during  the  period 
from  December  23,  1915,  to  December  23,  1940,  all  or  any  part 
of  its  notes  in  circulation.  To  that  end,  the  Secretary  of  the 
Treasury    was    empowered,    upon    application    of    any    Federal 

Reserve  Bank  approved  by  the  Federal  Reserve  Board,  to  issue, 
in  exchange  for  United  States  2%  bonds  with  circulation  privi- 
lege but  against  which  no  circulation  is  outstanding,  (1)  One- 
year  United  States  Gold  Notes  without  circulation  privilege  to 
an  amount  not  in  excess  of  one-half  of  the  2%  bonds  tendered  for 
exchange,  and  (2)  Thirty-year,  3%  bonds  without  circulation 
privilege  for  the  balance  of  the  2%  bonds  thus  tendered.  Such 
issue  was  made  conditional  upon  the  Federal  Reserve  Bank 
obtaining  such  gold  notes,  obligating  itself  to  purchase  in  gold 
from  the  Government,  at  the  maturity  of  these  notes  and  pro- 
vided so  requested  by  the  Secretary  of  the  Treasury,  an  amount 
equal  to  those  notes  which  it  received  in  exchange  for  2% 
bonds.  This  obligation  is  to  remain  in  force  for  thirty  years 
and,  at  each  successive  maturity  of  one-year  notes  purchased  by 
any  Federal  Reserve  Bank,  that  bank  shall  purchase  such  other 
one-year  notes  as  may  be  tendered  to  it  by  the  Secretary  of 
the  Treasury  but  not  in  greater  amount  than  was  originally 
issued  to  such  bank. 

Under  this  provision  there  were  issued  "One-year  Treasury  Notes" 
in  denominations  of  $1,000,  $10,000  and  $50,000,  designated  as 
the  series  of  the  dates  both  of  the  issue  and  maturity.  These 
notes  matured  one  year  after  the  date  of  issue,  bore  interest 
at  the  rate  of  3%  payable  quarterly  on  January  1st,  April  1st, 
July  1st  and  October  1st,  and  both  the  principal  and  interest 
thereof  were  payable  in  gold  coin.  $27,362,000  of  these  notes 
were  issued  in  1916  and  1917,  but  the  entire  amount  outstand-  . 
ing  was  retired  on  January  1,  1919,  and  no  new  issue  of  these 
One-year  Treasury  Notes  has  since  been  made. 

The  Thirty-year  bonds — officially  entitled  "Three  per  cent  Conver- 
sion Bonds" — are  designated  as  the  series  of  the  years  bot^  of 
issue  and  maturity  (e.  g.,  Series  of  1916-1946).  They  are  in 
two  forms:  (1)  Coupon  bonds  to  bearer  and  (2)  Registered 
bonds — principal  and  interest — both  in  denominations  of  $100, 
$1,000,  $5,000  and  $10,000.  The  coupon  bonds  are  exchangeable 
for  registered  bonds  but  the  law  prohibits  registered  bonds 
from  being  exchanged  for  coupon  bonds. 

The  Transfer  Agent  is  the  Office  of  the  Secretary  of  the  Treasury, 
Washington.  The  transfer  books  are  closed  on  the  last  day  of 
February,  May,  August  and  November  and  are  reopened  on 
the  first  day  of  April,  July,  October  and  January. 

These  3%  Conversion  bonds  are  not  accepted  as  security  for  the 
issue  of  circulating  notes  by  National  or  Federal  Reserve  Banks. 

Authorized,  to  an  amount  not  exceeding  $5,000,000,000,  by  the  Act 
of  Congress  approved  April  24,  1917  (the  First  Liberty  Bond 
Act),  the  First  Liberty  Loan  was  offered,  to  the  extent  of 
$2,000,000,000,  for  public  subscription  from  May  14  to  June 
15,  1917.  The  actual  subscriptions  received  amounted  to 
$3,035,226,850,  of  which  $1,989,456,650  were  allotted. 

This  loan  was  issued  in  two  forms  only:  (1)  Coupon  bonds  to 
bearer,  in  denominations  of  $50,  $100,  $500,  and  $1,000;  and 
(2)  Bonds  registered  as  to  principal  and  interest,  in  denomi- 
nations of  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000  and 
$100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable  without  charge.  Registered  bonds 
may  likewise  be  transferred  without  charge. 

This  issue  was  convertible,  at  par  and  accrued  interest,  into  any 
subsequent  Government  loan — other  than  Treasury  Certificates 
of  Indebtedness  and  similar  short-term  obligations — issued  dur- 
ing the  war  with  Germany  and  bearing  a  higher  rate  of  in- 
terest. It  was,  however,  specifically  prescribed  that  the  ma- 
turity, interest  dates  and  terms  of  redemption  of  the  new  bonds 
should  be  identical  with  those  of  the  bonds  to  be  converted  into 
them.  Under  these  provisions,  conversion  of  the  First  Liberty 
Loan,  3Ji%  bonds  of  1932-1947  into  the  following  Issues  was 
subsequently  permitted:  (1)  First  Liberty  Loan,  Converted 
4%  bonds  of  1932-1947;  (2)  First  Liberty  Loan,  Converted 
4^%  bonds  of  1932-1947;  and  (3)  First  Liberty  Loan,  Second 
Converted  4M%  bonds  of  1932-1947.  All  privilege  of  converting 
the  First  Liberty  Loan,  3%%  bonds  of  1932-1947  has  now  lapsed. 

The  2%%  bonds  of  the  First  Liberty  Loan  were  not  purchasable 
from  the  Bond  Purchase  Fund  created  by  an  amendment  to  the 
Second  Liberty  Bond  Act.  After  July  1,  1920,  they  can,  how- 
ever, be  purchased  and  cancelled  through  the  operation  of  the 
cumulative  Sinking  Fund  created  by  Section  6  (a)  of  the  Vic- 
tory Liberty  Loan  Act  of  March  3,  1919. 

The  First  Liberty  Loan  3^4%  bonds  are  not  eligible  as  security  for 
the  issue  of  circulation'  notes  by  National  Banks  and  Federal 
Reserve  Banks.  On  the  other  hand,  they  are  "receivable  as 
security  for  deposits  of  public  money"  and  for  Postal  Savings 
deposits. 


WAR 


LOAN 


DATED 


MATURITY 


RATE   OF 
INTEREST 


INTEREST    PAYABLl 


SECOND  LIBERTY  LOAN,  consist- 
ing of  two  issues: 
(1)    SECOND   LIBERTY   LOAN, 
4%,    Convertible    Gold    Bonds    of 
1927-1942. 


November  15, 

1917 


(2)   Second  Liberty  Loan,  Converted 
414%  bonds  of  1927-1942. 
Vide  page  7. 


THIRD    LIBERTY     LOAN,    4^4% 
Gold  Bonds  of  1928. 


[Page  Fourl 


November  15,  1942. 
Redeemable,  in  whole 
or  in  part,  at  par  and 
accrued  interest,  on 
any  interest  date  on 
and  after  November 
15,  1927,  at  the  option 
of  the  United  States, 
upon  six  months'  no- 
tice. 


4% 


May  9,  1918 


September  15,  1928.' 
"Not  subject  to  call 
for  redemption  before 
maturity." 


454% 


May  15th  and 
November  15th 


March  15th  and 
September  15th 


LOANS  (Continued) 


MOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


On   February  29,    1920, 
$568,419,050,  out  of  a 
total  issue  of 
$3,807,865,000 


On   February  29,   1920, 
$3,739,076,050,  out  of 
a  total  issue  of 
$4,176,516,850. 


Par,  if 
fully  paid 
for  on  or 
before 
Novem- 
ber 15, 
1917;  or 
par    and 
accrued 
interest  if 
paid     for 
after  that 
date. 


Par,  if 

fully  paid 

for  on  or 

before 

May  9, 

1918;  or 

par      and 

accrued 

interest, 

if  paid  for 

after  that 

date. 


"Exempt,  both  as  to  priii- 
cipul  and  interest  from 
all  taxation  now  or  here- 
after imposed  b.v  the 
United  States,  any  State, 
or  any  of  the  possessions 
of  the  United  States,  or 
by  any  local  taxing  au- 
thority, except  (a)  es- 
tate or  inheritance  taxes, 
and  (b)  graduated  addi- 
tional income  taxes, 
commonly  known  as  sur- 
taxes, and  excess  profits 
and  war-proflts  taxes, 
now  or  hereafter  im- 
posed by  the  United 
States,  upon  the  income 
or  profits  of  individuals, 
partnerships,  associa- 
tions, or  corporations. 
The  interest  on  an 
amount  of  such  bonds 
and  certificates  the  prin- 
cipal of  which  does  not 
exceed  in  the  aggregate 
$.'>,000,  owned  by  any  in- 
dividual, partnership,  as- 
sociation, or  corporation, 
shall  be  exempt  from  the 
taxes  provided  for  in 
sub-division  (2i)  of  this 
section." — Section  7  of 
the  Act  of  Congress  ap- 
proved September  24, 
1917  (40  United  States 
Statutes  at  Large,  291). 

For      further      exemptions 
vide  page  1 11. 


"The  bonds  shall  be  ex- 
empt, l)oth  as  to  princi- 
pal and  interest,  from 
all  taxation  now  or  here- 
after imposed  by  the 
I'nited  Stsites,  any  State, 
or  any  of  the  possessions 
of  the  ITnited  States,  or 
by  any  local  taxing  au- 
thority, except  (a)  es- 
tate or  inheritance  taxes 
and  (b)  graduated  addi- 
tional income  taxes,  com- 
monly known  as  sur- 
taxes, and  excess-profits 
and  war-profits  taxes. 
now  or  hereafter  im- 
posed by  the  United 
States,  upon  the  income 
or  profits  of  individuals, 
partnerships,  associa- 
tions, or  corporations. 
The  interest  on  an 
amount  of  bonds  and  cer- 
tificates authorized  by 
said  act  approved  Sep- 
tember 24.  1917,  or  by 
said  act  as  amended  by 
said  act  anproved  Anril 
4.  1918,  the  principal  of 
which  does  not  exceed 
in  the  aggregate  S-l-OflO. 
owned  by  any  ipdivnliml. 
partnership,  association, 
or  corporation,  shall  be 
exemnt  from  the  taxes 
provided  for  in  clause 
(h)  above."  —  Treasury 
Department  Circular 
No.  111.  dated  April  6, 
19T8.  which  offered  the 
Third  I.ihertv  Txian  for 
public  subscription.  For 
additional  exemptions 
vide  page  11. 


REMARKS 


The  Act  of  Congress  approved  September  24,  1917,  authorized  the 
issuance  of  the  Second  Liberty  Loan  to  the  extent  of 
.$7,.588,945,460,  of  which  $3,063,945,460  were  to  be  in  lieu  of 
unissued  bonds  authorized  by  the  First  Liberty  Bond  Act  and 
$475,000,000  in  lieu  of  unissued  bonds  previously  authorized  for 
the  Panama  Canal,  naval  construction  and  extraordinary  ex- 
penditures. 

The  Second  Liberty  liOan  was  offered  for  public  subscription,  to  the 
extent  of  $.3,000,000,000,  from  October  1  to  October  27,  1917. 
$4,617,532,300  were  actually  subscribed  and  $3,807,865,000 
allotted. 

Thi^  loan  was  issued  in  two  forms  only:  (1)  Coupon  bonds  to 
hearer,  in  denominations  of  $50,  $100,  $500,  $1,000,  $5,000  and 
$10,000;  and  (2)  Bonds  registered  as  to  principal  and  interest, 
in  denominations  of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000, 
$50,000  and  $100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable,  and  registered  bonds  are  transfer- 
able, all  without  charge. 

Thi><  issue  was,  and  still  is,  convertible  into  the  Second  Liberty 
Loan,  Converted  4M%  bonds  of  1927-1942  only.  Such  conver- 
sions must  be  made  independently  of  any  exchange  of  bonds.  AU 
such  conversions  and  exchanges  are  made  on,  or  as  of,  an  inter- 
est date  and  not  at  other  times. 

Through  amendment  of  the  Second  Liberty  Bond  Act  by  Section  6 
of  the  Third  Liberty  Bond  Act,  the  Second  Liberty  Loan.  4% 
Convertible  bonds  of  1927-1942  could  be  purchased  from  the  Bond 
Purchase  Fund  at  an  average  price  of  par  and  accrued  interest. 
Not  more  than  one-twentieth  of  the  bonds  originally  issued 
could  be  purchased  during  the  first  year  after  their  date  of 
issue,  nor  more  than  one-twentieth  of  the  amount  of  bonds  out- 
standing at  the  beginning  of  each  period  of  twelve  months  there- 
after, and  such  purchases  were  to  cease  at  "the  expiration  of 
one  year  after  the  termination  of  the  war." 

On  and  after  July  1,  1920,  the  bonds  of  this  issue  may  be  purchased 
and  retired  through  the  operation  of  the  cumulative  Sinking 
Fund  already  alluded  to. 

The  Second  Liberty  I>oan,  4%  Convertible  bonds  of  1927-1942  are 
receivable  as  security  for  deposits  of  public  money  and  for 
Postal  Savings  deposits,  but  they  are  not  eligible  as  security 
for  the  issue  of  circulating  notes  by  National  and  Federal  Re- 
serve Banks. 

The  Third  Liberty  Loan,  authorized  by  the  Act  of  Congress  ap- 
proved September  24,  1917,  as  amended  by  the  Act  of  April  4, 
1918  (the  Third  Liberty  Bond  Act),  was  offered  for  public  sub- 
scription from  April  6  to  May  4,  1918,  to  the  amount  of 
$3,000,000,000.  Subscriptions  to  the  extent  of  $4,176,516,850 
were  actually  received  and  allotted. 

This  loan  is  issued  in  two  forms  only:  (1)  Coupon  bonds  to  bearer, 
in  denominations  of  $50,  $100.  $.500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  denom- 
inations of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000  and 
$100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable,  and  registered  bonds  are  transfer- 
able, all  without  charge. 

"The  bonds  of  this  issue  are  not  entitled  to  any  privilege  of  con- 
version into  bonds  bearing  a  higher  rate  of  interest." 

Section  6  of  the  Third  Liberty  Bond  Act,  by  amendment  to  the 
Second  Liberty  Bond  Act,  created  a  Bond  Purchase  Fund  from 
which,  until  one  year  after  the  termination  of  war,  the  Third 
Liberty  Loan  bonds  could  be  purchased  to  the  extent  of  one- 
twentieth  of  the  amount  outstanding  under  the  same  conditions 
and  restrictions  as  the  Second  Liberty  Loan. 

On  and  after  July  1.  1920,  the  bonds  of  the  Third  liberty  Loan 
may  be  purchased  and  cancelled  through  the  operation  of  the 
cumulative  Sinking  Fund  already  described. 

Bonds  of  this  Issue  "which  have  been  owned  by  any  person  con- 
tinuously for  at  least  six  months  prior  to  the  date  of  his  death, 
and  which  upon  such  date  constitute  part  of  his  estate,  shall, 
*  *  *,  be  receivable  by  the  United  States  at  par  and  accrued 
interest  in  pa.vment  of  any  estate  or  inheritance  taxes  imposed 
by  the  United  States,  under  or  by  virtue  of  any  present  or 
future  law  upon  such  estate  or  the  inheritance  thereof." 

They  are,  moreover,  receivable  as  security  for  deposits  of  public 
money  and  for  Postal  Savings  deposits,  but  are  not  eligible  as 
security  for  the  issue  of  circulating  notes. 


WAR 


LOAN 


DATED 


MATURITY 


RATE   OF 
INTEREST 


INTEREST    PAYABL 


FOURTH  LIBERTY  LOAN,  4^% 
Gold  Bonds  of  1933-1938. 


October  24,  1918 


VICTORY  LIBERTY  LOAN,  in  two 
scncs  * 

(1)  VICTORY  LIBERTY  LOAN, 

4^%  Convertible  Gold  Notes  of 
1922-1923,  and 

(2)  VICTORY  LIBERTY  LOAN, 
334%  Convertible  Gold  Notes  of 
1922-1923. 


[Page  Five] 


October  15,  1938.  Re- 
deemable, in  whole  or 
in  part,  at  par  and  ac- 
crued interest,  on  any 
interest  date  on  or 
after  October  15, 
1933,  "at  the  pleasure 
of  the  United  States," 
upon  six  months'  no- 
tice. 


A%% 


May  20,  1919 
May  20,  1919 


April  15th  and 
October  15th 


May  20,  1923 


May    20,     1923. 

Both  series  of 
notes  are  redeem- 
able, in  whole  or 
in  part,  at  par  and  ac- 
crued interest,  on 
June  15,  1922,  or  on 
December  15,  1922,  at 
the  option  of  the 
United  States,  upon 
four  months'  notice, 


43/4% 


June  15th  and 
December  15th 

June  15th  and 
December  15th. 
The  final  pay- 
ment of  the  lin- 
terest  of  both 
series  will  be 
made  on  May 
20,  1923 


LOANS  (Continued) 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


On  February  29,   1920, 
$6,534,880,200,  out  of 
a  total  issue  of 
$6,992,927,100. 


Par,  if 
fully  paid 
for  on  or 
before 
October 
24,   1918; 
or  par 
and  ac- 
crued 
interest, 
if  paid 
for  after 
that  date. 


On  February  29,   1920, 
$4,459,014,266,  out  of 
a  total  issue  of 
$4,497,830,850. 


Par 


Par 


EXEMPTION 


REMARKS 


"The  bonds  shall  be  ex- 
empt, both  as  to  princi- 
pal and  interest,  from 
all  taxation  now  or  here- 
after imposed  by  the 
United  States,  any  State, 
or  any  of  the  possessions 
of  the  United  States,  or 
by  any  local  taxing  au- 
thority, except  (a)  es- 
tate or  inheritance  taxes, 
and  (b)  graduated  addi- 
tional income  taxes, 
commonly  known  as  sur- 
taxes, and  excess  profits 
and  war-proflts  taxes, 
now  or  hereafter  im- 
posed by  the  United 
States,  upon  the  income 
or  profits  of  individuals, 
partnerships,  associa- 
tionsi  or  corporations. 
The  interest  on  an 
amount  of  bonds  and 
certificates  authorized 
by  said  Act  approved 
September  24,  1917,  and 
amendments  thereto,  the 
principal  of  which  does 
not  exceed  in  the  aggre- 
gate $5,000,  owned  by 
any  individual,  partner- 
ship, association,  or  cor- 
poration, shall  be  exempt 
from  the  taxes  provided 
for  in  clause  (b)  above." 
—  Treasury  Department 
Circular  No.  121,  dated 
September  28,  1918, 
whereby  the  Fourth  Lib- 
erty Loan  was  offered 
for  public  subscription. 

For  additional  exemptions, 
including  those  during 
the  two  years  following 
the  termination  of  war 
with  Germany,  vide 
page  11. 

4%%  NOTES 
"Exempt,  both  as  to  princi- 
pal   and    interest,    from 
all  taxation  now  or  here- 
after   imposed    by    the 
United  States,  any  State, 
or  any  of  the  possessions 
of  the  United  States,  or 
by  any  local  taxing  au- 
thority,   except    (a)    es- 
tate or  inheritance  taxes, 
and    (b)    graduated    ad- 
ditional    income     taxes, 
commonly  Unown  as  sur- 
taxes, and  excess-profits 
and     war-proflts     taxes, 
now     or    hereafter     im- 
posed    by     the     United 
States,  u|H>n  the  income 
or  profits  of  individuals, 
partnerships,        associa- 
tions, or  corporations." 
3%%  NOTES 
"Exempt,  both  as  to  prin- 
cipal and   interest,  from 
all  taxation    (except  es- 
tate       or        inheritance 
taxes)   now  or  hereafter 
imposed    by    the    United 
States,  any  State,  or  any 
of  the  possessions  of  the 
United  States,  or  by  any 
local    taxing    authority." 
— Treasury     Department 
Circular   No.   138,   dated 
April  21,  1919,  which  of- 1 
fered    the    Victory    Lib- 
erty Loan  for  public  sub- 
scription and  which  fixed 
for  each  series  of  notes 
the  exemptions  of  which 
several  alternatives  were 
suggested  in  the  Victory 
Liberty   Ix>an   Act,   viz.: 
Act  of  Congress  approved 
March  3,  1919  (40  United 
States  Statutes  at  Large 

1  ntKiW 


The  Fourth  Liberty  Loan,  authorized  by  the  Act  of  Congress  ap- 
proved September  24,  1917,  as  amended  by  the  Acts  of  April 
4,  1918,  and  July  9,  1918  (the  Third  and  Fourth  Liberty  Bond 
Acts),  and  supplemented  by  the  Act  of  September  24,  1918  (Sup- 
plement to  Second  Liberty  Bond  Act),  was  off'ered  for  public 
subscription  from  September  28  to  October  19,  1918,  to  the 
extent  of  $6,000,000,000.  The  total  subscriptions  amounted  to 
$6,992,927,100,  all  of  which  was  allotted. 

This  issue  is  in  two  forms  only:  (1)  Coupon  bonds  to  bearer,  in 
denominations  of  $.50,  $100,  $500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  de- 
nominations of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000 
and  $100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable,  and  registered  bonds  are  transferable, 
all  without  charge. 

The  bonds  of  the  Fourth  Liberty  Loan  were  not  granted  any  privi- 
lege of  conversion  into  future  Government  issues  bearing  a 
higher  rate  of  interest. 

These  securities  could  be  bought  from  the  Bond  Fund  at  the  same 
prices  and  under  the  same  conditions  as  the  Second  and  Third 
Liberty  Loan.  On  and  after  July  1,  1920,  the  bonds  of  the 
Fourth  Liberty  Loan  may  be  purchased  and  cancelled  through 
the  operation  of  the  cumulative  Sinking  Fund. 

In  respect  to  receivability  for  the  payment  of  estate  or  inheritance 
taxes  imposed  by  the  United  States,  and  as  security  for  deposits 
of  public  money  and  for  Postal  Savings  deposits,  as  well  as  the 
fact  that  they  do  not  bear  any  circulation  privilege,  the  Fourth 
Liberty  Loan  Bonds  are  identical  with  those  of  the  Second 
and  Third  Liberty  Loans. 


The  Victory  Liberty  Loan,  authorized  by  the  Act  of  Congress  ap- 
proved September  24,  1917,  as  amended  and  supplemented  by 
the    Acts    of    April    4,    July    9    and    September    24,    1918,    and 
March  3,  1919   (Victory  Loan  Act),  was  offered  for  public  sub- 
scription  from   April   21   to   May    10,   1919,   to   the   amount   of 
$4,500,000,000.        It      was      oversubscribed,      the      total      being 
$5,249,908,300,  and  $4,497,830,850  of  notes  were  allotted. 
Both  series  are  in  two  forms:    (1)    Coupon  notes  to  bearer,  in  de- 
nominations of  $50,  $100,  $500,  $1,000,  $5,000  and  $10,000;  and 
(2)    Notes   registered   as   to   principal,   and   as   to   the   interest 
payable  after  December  15,  1919,  in  denominations  of  $50,  $100, 
$500,  $1,000,  $5,000,  $10,000,  $.50,000  and  $100,000.     These  regis- 
tered notes  had  a  single  coupon  attached  covering  the  interest 
payable  on  December  15,  1919. 
Coupon  notes,  registered  notes  and  notes  of  different  denominations 
are  interchangeable,  and  registered  notes  are  transferable,  all 
without  charge. 
The  4947o  and  the  394%  Victory  Liberty  Notes  are  inter-convertible,  ' 
such   "privilege  of  conversion  extending   to   notes   issued   upon 
conversion  as  well  as  notes  issued  upon  original  subscription." 
They   are  not,  however,  convertible  into  any  subsequent   Gov- 
ernment loan. 
Until  one  year  after  the  termination  of  the  war  with  Germany, 
both  issues  of  notes  could  be  bought  from  the  Bond  Purchase 
Fluid  at  the  same  prices  and  under  the  same  conditions  as  the 
bonds   of   the   Second,   Third   and   Fourth   Liberty   Loans.     On 
and  after  July  1,  1920,  they  may  be  retired  through  the  oper 
ation   of   the   cumulative    Sinking   Fund   created   by    Section   6 
(a)   of  the  Victory  Liberty  Loan  Act. 
Both  series  of  notes  are  receivable  as  security  for  the  deposit  of 
public  money  and  for  Postal  Savings  deposits,  but  neither  series 
bears  the  circulation  privilege. 


CONVERSIONS  OF 


LOAN 


DATED 


MATURITY 


RATE   OF 
INTEREST 


4 


INTEREST    PAYABL 


(1)  FIRST  LIBERTY  LOAN,  CON- 
VERTED 4%  GOLD  BONDS  OF 
1932-1947. 


November  15, 

1917 


(2)  FIRST  LIBERTY  LOAN,  CON- 
VERTED 4^%  GOLD  BONDS 
OF  1932-1947. 


June  15,  1947.  Redeem- 
able, in  whole  or  in 
part,  at  par  and  ac- 
crued interest,  on  any 
interest  date  on  or 
after  June  15,  1932, 
upon  three  months' 
published  notice. 


4% 


May  9,   1918 


June  15th  and 
December  15th  I 


June  15,  1947.  Redeem 
able,  in  whole  or  in 
part,  at  par  and  ac- 
crued interest,  on  any 
interest  date  on  or 
after  June  15,  1932, 
upon  three  months' 
published  notice. 


beginning  on 
June  15,  1918 


June  15th  and 
December  IStn 


[Page  Six] 


,3ERTY  LOANS 


)UNT  OUTSTANDING 


Price  at 
Which 
Issued 


February  29,   1920, 
1138,757,100,  out  of  a 
lotal  issue  of 
1.568,318,450 


Par 

and 
accrued 
interest 


February  29,   1920, 
[408,981,450,  out  of  a 
lotal  issue  of 
1426,278,900 


Par 

and 
accrued 
interest 


EXEMPTION 


The  exemption  of  these 
converted  bonds,  both  as 
to  principal  and  interest, 
is  identical  with  that  of 
the  Second  Liberty  Loan, 
4%  Convertible  bonds  of 
1927-1942. 

This  exemption  is  fully 
set  forth  in  Treasury 
Department  Circular  No 
93,  dated  October  19, 
1917,  which  announced 
the  conditions  governing 
the  initial  conversion  of 
the  3J4%  Gold  Bonds  of 
the  First  Liberty  Loan. 
Specific  reference  to  this 
circular  is  made  on  the 
face  of  each  First  Lib- 
erty Loan,  Converted 
4%  bond  of  19321947. 


The  exemption  of  this  is- 
sue, both  as  to  principal 
and  interest,  is  identical 
with  that  of  the  Third 
Liberty  Loan,  i%% 
bonds  of  1928. 

This  exemption  is  fully  set 
forth  in  Treasury  De- 
partment Circular  No. 
114,  dated  May  9,  1918, 
which  annoimced  the 
conditions  governing  the 
conversion  of  the  3%% 
Gold  Bonds  of  1932-1947 
of  the  First  Liberty 
Loan,  the  converted  4% 
Gold  Bonds  of  1932-1947 
of  the  First  Liberty 
Loan,  and  the  4%  Con- 
vertible Gold  Bonds  of 
1927-1942  of  the  Second 
Liberty  Loan. 

Specific  reference  to  Sub- 
division X  of  that  cir- 
cular— in  which  a  full 
description  is  given  of 
this  issue — is  made  on 
the  face  of  each  Firsf 
Liberty  Loan,  Converted 
4M%  Gold  Bond  of 
1932-1947. 


REMARKS 


The  Converted,  4%,  1932-1947,  bonds  of  the  First  Liberty  Loan, 
authorized  by  the  Acts  of  Congress  approved  April  24,  1917, 
and  September  24,  1917,  consist  of  the  First  Liberty  Loan, 
3%%  bonds  of  1932-1947  converted  into  the  rate  of  interest  of 
the  Second  Liberty  Loan. 

They  were  issued  in  two  forms:  (1)  Coupon  bonds  to  bearer,  in 
denominations  of  $50,  $100,  $500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  de- 
nominations of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000 
and  $100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  dilTerent  denomina- 
tions are  interchangeable  without  charge.  Registered  bonds  are 
likewise  transferable  without  charge. 

This  issue  is  convertible  into  the  First  Liberty  Loan,  4M%  bonds  of 
1932-1947,  until  otherwise  prescribed  by  the  Secretary  of  the 
Treasury.  Such  conversion,  as  well  as  all  exchanges  of  coupon 
bonds  for  registered  bonds  and  vice  versa,  will,  after  June  30, 
1919,  be  made  on,  or  as  of,  an  interest  date  only.  Moreover, 
exchanges  must  be  made  independently  of  conversions  and  by 
a  separate  operation. 

The  Converted,  4%  bonds  of  1932-1947  of  the  First  Liberty  Loan  are 
receivable  as  security  for  deposits  of  public  money  and  for 
Postal  Savings  Deposits,  but  are  not  eligible  for  security  for 
the  issue  of  circulating  notes. 

These  converted  bonds  could  be  bought  from  the  Bond  Purchase 
Fund  or  may  be  retired  through  the  operation  of  the  cumulative 
Sinking  Fund  in  the  same  manner  as  prescribed  lor  the  Second 
Liberty  Loan,  4%  Convertible  bonds  of  1927-1942. 


This  issue,  authorized  by  the  Acts  of  Congress  approved  April  24, 
1917,  and  September  24,  1917,  as  amended  by  the  Act  of  Con- 
gress approved  April  4,  1918,  consists  of  the  First  Liberty 
Loan,  i%%  bonds  of  1932-1947  and,  upon  conversion,  of  the 
First  Liberty  Loan,  Converted  4%  bonds  of  1932-1947  converted 
into  the  rate  of  interest  of  the  Third  Liberty  Loan  as  author- 
ized by  the  Acts  of  Congress  approved  September  24,  1917,  and 
April  4,  1918,  creating  the  Third  Liberty  Loan. 

This  issue  is  in  two  forms  only:  (1)  Coupon  bonds  to  bearer,  in 
denominations  of  $50,  $100,  $500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  de- 
nominations of  $50,  $100,  $500,  $1,000.  $5,000,  $10,000,  $50,000 
and  $100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable,  and  registered  bonds  are  transferable, 
all  without  charge. 

"The  bonds  of  this  issue  are  not  entitled  to  any  privilege  of  con- 
version into  bonds  bearing  a  higher  rate  of  interest." 

These  First  Liberty  Loan,  Converted  4M%  bonds  of  1932-1947  could 
be  bought  from  the  Bond  Purchase  Fund  or,  after  July  1,  1920, 
may  be  retired  by  the  operation  of  the  cumulative  Sinking  Fund 
In  the  same  manner  and  under  the  same  conditions  as  the  Third 
Liberty  Loan. 

Ill  respect  to  their  receivability  for  the  payment  of  United  States 
estate  or  inheritance  taxes  and  as  security  for  deposits  of 
public  money  and  for  Postal  Savings  deposits,  as  well  as  their 
non-eligibility  as  security  for  the  issue  of  circulating  notes  by 
National  and  Federal  Reserve  Banks,  these  converted  bonds  are 
identical  with  those  of  the  Third  Liberty  Loan. 


CONVERSIONS  OF 


LOAN 


DATED 


MATURITY 


RATE  OF 
INTEREST 


INTEREST  PAYABl 


(3)  FIRST  LIBERTY  LOAN, 
SECOND  CONVERTED  4^4% 
GOLD  BONDS  OF  1932-1947. 


(4)  SECOND  LIBERTY  LOAN, 
CONVERTED  4%%  GOLD 
BONDS  OF  1927-1942. 


October  24,  1918 


May  9,  1918 


[Page  Seven] 


June  15,  1947.  Redeem- 
able, in  whole  or 
in  part,  at  par  and  ac- 
crued interest,  on  and 
after  June  15,  1932, 
upon  three  months' 
published  notice. 


November  15,  1942.  Re- 
deemable, in  whole  or 
in  part,  at  par  and  ac- 
crued interest,  on  any 
interest  date  on  or 
after  November  15, 
1927,  at  the  option  of 
the  United  States, 
upon  six  months'  no- 
tice. 


4J4% 
beginning 
on  Decem- 
ber 15,  1918 


454% 
beginning  on 
May  15,  1918 


June  15th  and 
December  15tl: 


May  15th  and 
November  15t 


i 


I 


LIBERTY  LOANS  (Continued) 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


On  February  29,  1920, 
$3,492,150,  which  was 
the  total  amount 
issued 


Par 

and 
accrued 
interest 


On  February  29,   1920, 
$2,836,887,600,  out  of 
a  total  issue  of 
$3,170,395,350. 


Par 

and 
accrued 
interest 


¥ 


The  exemption  of  this  is- 
sue, both  as  to  principal 
and  interest,  is  identical 
with  that  of  the  Fourth 
Liberty  Loan,  4H% 
bonds  of  1933-1938. 

This  exemption  is  fully  se( 
forth  in  Treasury  I>e- 
partment  Circular  No. 
123.  dated  October  24, 
1918,  which  announced 
the  conditions  governing 
the  conversion  of  First 
Liberty  Loan,  3^6% 
bonds  of  1932-1947  into 
the  present  issue. 

Specific  reference  to  Snb- 
division  VII  of  that  cir- 
cular— in  which  a  de- 
tailed description  of  this 
issue  is  given — is  madf 
on  the  face  of  each  First 
Liberty  Loan,  Second 
Converted  4M%  gold 
bond  of  1932-1947. 


The  exemption  of  these 
converted  bonds,  both  a^ 
to  principal  and  interest, 
is  identical  with  that  of 
the  Third  Liberty  Loan, 
4M%  bonds  of  1928. 

This  exemption  is  set  forth 
in  detail  in  Treasury  De- 
partment Circular  No. 
114,  dated  May  9,  1918, 
which  annoimced  the 
conditions  governing  the 
conversion  into  the  pres- 
ent issue  of  the  4% 
Convertible  Gold  Bonds 
of  1927-1942  of  the  Sec- 
ond Liberty  Loan,  a,f 
well  as  certain  bonds  of 
the  First  Liberty  Loan. 

Specific  reference  to  Sub 
division  XI  of  that  cir 
cular — wherein  a  full  de- 
scription of  this  issue  is 
given — is  made  on  the 
face  of  all  Second  Lib- 
erty Loan,  Converted 
4M%  gold  bonds  of 
1927-1942. 


This  issue,  authorized  by  the  Acts  of  Congress  approved  April  24, 
1917,  and  September  24,  1917,  as  amended  by  the  Acts  of  Con- 
gress approved  April  4,  1918,  and  July  9,  1918,  consists  of  the 
First  Liberty  Loan,  3^6%  bonds  of  1932-1947  converted  into  the 
rate  of  interest  of  the  Fourth  Liberty  Loan. 

The  securities  are  in  two  forms  only:  (1)  Coupon  bonds  to  bearer, 
in  denominations  of  $50,  $100,  $500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  de- 
nominations of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000 
and  $100,000. 

The  coupon  bonds,  registered  bonds  and  bonds  of  different  denom- 
inations are  interchangeable,  and  registered  bonds  are  trans- 
ferable, all  without  charge. 

"The  bonds  of  this  issue  are  not  entitled  to  any  privilege  of  con- 
version into  bonds  bearing  a  higher  rate  of  interest." 

These  First  Liberty  Loan,  Second  Converted,  4M%  bonds  of  1932- 
1947  could  be  bought  from  the  Bond  Purchase  Fund  or,  after 
July  1,  1920,  retired  b.v  the  operation  of  the  cumulative  Sinking 
Fund  in  the  same  manner  and  under  the  same  conditions  as  the 
bonds  of  the  Fourth  Liberty  Loan. 

In  respect  to  their  receivability  for  the  payment  of  United  States 
estate  or  inheritance  taxes  and  as  security  for  the  deposit  of 
public  money  and  for  Postal  Savings  deposits,  as  well  as  their 
non-eligibility  as  security  for  the  issue  of  circulating  notes  by 
National  and  Federal  Reserve  Banks,  this  issue  is  identical  with 
the  Fourth  Liberty  Loan,  4M%  bonds  of  1933-1938. 


This  issue,  authorized  by  the  Act  of  Congress  approved  September 
24,  1917,  as  amended  by  the  Act  of  Congress  approved  April  4, 
19l8,  consists  of  the  Second  Liberty  Loan,  4%  Convertible  Gold 
Bonds  of  1927-1942  converted  into  the  rate  of  interest  of  the 
Third  Liberty  Loan. 

The  securities  are  in  two  forms  only:  (1)  Coupon  bonds  to  bearer, 
in  denominations  of  $50,  $100,  $500,  $1,000,  $5,000  and  $10,000; 
and  (2)  Bonds  registered  as  to  principal  and  interest,  in  de- 
nominations of  $50,  $100,  $500,  $1,000,  $5,000,  $10,000,  $50,000 
and  $100,000. 

Coupon  bonds,  registered  bonds  and  bonds  of  different  denomina- 
tions are  interchangeable,  and  registered  bonds  are  transfer- 
able, all  without  charge. 

"The  bonds  of  this  issue  are  not  entitled  to  any  privilege  of  con- 
version into  bonds  bearing  a  higher  rate  of  interest." 

These  Second  Liberty  Loan,  Converted  4M%  bonds  of  1927-1942 
could  be  bought  from  the  Bond  Purchase  Fund  or,  after  July  1, 
1920,  may  be  retired  by  the  operation  of  the  cumulative  Sinking 
Fund  in  the  same  manner  and  under  the  same  conditions  as  the 
Third  Liberty  Loan. 

Insofar  as  concerns  their  receivability  for  the  payment  of  United 
States  estate  or  inheritance  taxes  and  as  security  for  deposits  of 
public  money  and  for  Postal  Savings  deposits,  as  well  as  their 
non-eligibility  as  security  for  the  issue  of  circulating  notes 
by  National  and  Federal  Reserve  Banks,  this  issue  is  identical 
with  the  Third  Liberty  Loan. 


I 


CERTIFICATES  OF 


LOAN 


DATED 


MATURITY 


INTEREST    PAYABI 


TREASURY    CERTIFICATES    OF 

INDEBTEDNESS,  in  ten  series: 

(1)  SERIES  T  10 

(2)  SERIES  T  D-1920 

(3)  SERIES  T  M-1921 

(4)  SERIES  G  1920 

(5)  SERIES  H  1920 

(6)  SERIES  A  1921 

(7)  SERIES  T  J-1921 

(8)  SERIES  B   1921 

(9)  SERIES  T  M  2-1921 


September  15, 

1919 
January  2,  1920 

March  15,  1920 

April  15,  1920 
May  17,  1920 
June  15,  1920 
June  15,  1920 

July  15,  1920 
July  15,  1920 


September  15,  1920 

December  15,  1920 

March  15,  1921 

October  15,  1920 
November  15,  1920 
January  3,  1921 
June  15,  1921 

January  15,  1921 
March  15,  1921 


454% 

43/^% 

^%% 

5/2% 

53/4% 

6% 

53.4% 
53/i% 


March  15th  and 

September  15tl 
June  15th  and 

December  15tl' 
March  15th  and 

September  15tl 
At  maturity 
At  maturity 
At  maturity 
June  15th  and 

December  15tl 
At  maturity 
At  maturity 


Tax  Certificates  ("denoted  by  the  letter  T,  the  seco 

letter  indicating  the  month  of  maturity) 

Loan  Certificates   

Special  Issues   


(10)   SERIES  C  1921 


August  16,  1920 


Total 
August  16,  1921 


Certificates     of     Indebtedness     issued 
under  the  PITTMAN  ACT. 


Various  dates 
beginning  on 
August  20, 
1918 


One  year  after  date  of 
issue 


6% 


2% 


[Page  Eight] 


February  16th  an 
August  16th 


January  1st  and 
July  1st 


f 


INDEBTEDNESS 


iMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


mount  issued: 

Par 

$657,469,000 

and 

accrued 

$703,026,00a 

interest 

for  all 

$201,370,500 

Certifi- 

$170,633,500 

cates  of 

$102,865,000 

Indebted- 

$176,604,000 

ness. 

$242,517,000 

$126,783,500 

« 

$  74,278,000 

otal  $2,455,546,500 

» 

pproximate       amount 

outstanding    on 

July  31,  1920: 

$1,866,660,500 

566,886,000 

20,000,000 

$2,453,546,500 

mount  of  issue  not  yet 
determined,  but  about 
$150,000,000. 


n  July  31,  1920, 
$259,375,000,       which 
was  the  total  amount 
issued. 


Par 

and 
accrued 
interest 


All  these  Certificates  of 
Indebtedness  "shall  be 
exempt,  both  as  to  prin- 
cipal and  interest  from 
all  taxation  now  or  here- 
after imposed  by  the 
United  States,  any  State, 
or  any  of  the  posses- 
sions of  the  United 
States,  or  by  any  local 
taxing  authority,  except 
(a)  estate  or  inheritance 
taxes,  and  (b)  gradu- 
ated additional  income 
taxes,  commonly  known 
as  surtaxes,  and  excess 
profits  and  war-profits 
taxes,  now  or  hereafter 
imposed  by  the  United 
States,  upon  the  income 
or  profits  of  individuals, 
partnerships,  associa- 
tions, or  corporations. 
The  interest  on  an 
amount  of  such  bonds 
and  ^  certificates  the 
principal  of  which  does 
not  exceed  in  the  aggre- 
gate $5,000,  owned  by 
any  individual,  partner- 
ship, association,  or  cor- 
poration, shall  be  exempt 
from  the  taxes  provided 
for  in  subdivision  (b)  of 
this  section." — Section  7 
of  the  Act  of  Congress 
approved  September  24, 
1917  (40  United  States 
Statutes  at  Large,  291). 


The  same  as  the  preceding 
Certificates  of  Indebted- 


ness. 


Section  5  of  the  Act  of  Congress  approved  September  24,  1917 

the  Second  Liberty  Bond  Act — empowered  the  Secretary  of  the 
Treasury   to   borrow   from  time   to   time,  on  the  credit  of  the 
United  States,  in  order  to  meet  public  expenditures  authorized 
by  law,  such  sums  as  he  deems  necessary  and  to  issue  therefor, 
at  not  less  than  par,  Certificates  of  Indebtedness  payable  not 
later  than  one  year  from  the  date  of  issue.     The  forms,  con- 
ditions, rates  of  interest  and  redemption  features  were  to  be 
determined  by  him,  but  a  limitation  of  $4,000,000,000  was  placed 
upon  the  amount  of  Certificates  of  Indebtedness  which  he  was 
authorized  to  issue  under  the  First  and  Second  Liberty  Bond 
Acts.    Sectioa  4  of  the  Act  of  Congress  approved  April  4,  1918 
(the    Third    Liberty    Bond    Act) — increased    that    amount    to 
$8,000,000,000,  and  Section  3  of  the  Act  of  Congress  approved 
March  3,  1919 — the  Victory  Liberty  Loan  Act— further  increased 
that  amount  to  $10,000,000,000. 
Under  authority  conferred  by  the  above-mentioned  Act  of  Septem- 
ber 24,  1917,  as  amended,  a  number  of  series  of  Certificates  of 
Indebtedness  have  been  issued — principally  through  Federal  Re- 
serve Banks.    Certain  series  have  already  matured;  those  hero 
enumerated  are  still  outstanding. 
These  Certificates  of  Indebtedness  are  issued  in  two  forms:    (1) 
Certificates  with  coupons  attached;  and  (2)  Certificates  withou 
coupons,  in  which  case  the  interest  is  paid  at  the  date  of  ma 
turity  of  the  certificate.     Both  forms  are  issued  in  denomina 
tions  of  $500,  $1,000,  $5,000,  $10,000  and  $100,000. 
The  following  series  have  coupons  attached,  viz.: 

T-10,  two  coupons,  one  payable  March  15,  1920,  the  other  Sep 
tember  15,  1920.  T  D-1920,  two  coupons,  one  due  June 

15,  1920,  the  other,  December  15,  1920.  T  M-1921,  two 

coupons,  one  payable  September  15,  1920,  the  other,  March 
15,  1921.  T  J-1921,  two  coupons,  one  due  December  15, 

1920,  the  other,  June  15,  1921.  T  M  2-1921,  one  coupon 

payable  March  15,  1921.  G  1921,  two  coupons,  one  due 

February  16,  1921,  the  other  August  16,  1921. 
There  are  no  coupons  attached  to  these  series: 

F  1920,  G  1920,  H  1920,  A  1921  and  B  1921. 
The  following  series  are  receivable,  at  par  and  accrued  interest,  in 
payment  of  Income  and  Profits  taxes :  T-10,  T  D-1920,  T  M-1921, 
T  J-1921  and  T  M  2-1921.  None  of  the  other  series  are  thu.s 
receivable. 
None  of  the  Certificates  of  Indebtedness  enumerated  in  this  list 
bear  the  circulation  privilege. 

Authorized  by  the  Act  of  Congress  approved  September  24,  1917 
(the  Second  Liberty  Bond  Act),  as  amended  by  the  Act  of 
April  4,  1918,  and  by  the  Act  of  Congress  approved  April  23, 
1918  (the  Pittman  Act),  these  Certificates  of  Indebtedness  were 
issued  as  security  for  the  bank  notes  emitted  by  the  Federal 
Reserve  Banks  in  substitution  for  the  silver  dollars  melted  or 
broken  up  and  sold  as  bullion  under  authority  of  the  Pittman 
Act,  the  purpose  being  to  prevent  a  contraction  of  the  currency 
in  circulation. 
During  the  period  of  slightly  niore  than  18  months  following  the 
approval  of  the  Pittman  Act  and  terminating  on  October  31, 
1919,  $260,121,554  standard  silver  dollars  were  melted, 
$256,944,000  silver  certificates  were  withdrawn  from  circula- 
tion and  cancelled,  and  $257,899,845  bank  notes  were  issued  by 
Federal  Reserve  Banks,  of  which  $256,243,845  were  outstanding 
on  October  31.  1919. 
The  bank  notes  of  the  Federal  Reserve  Banks  thus  issued  were 
secured  by  the  following: 

4%  Loan  of  1925 $     1,768,000 

2%  Consols  of  1930 4,523,100 

Panama  Canal  Loan,   Series   of  1916-1936  130,300 

Panama  Canal  Loan,  Series  of   1918-1938  258,000 

Special    Certificates    of   Indebtedness,    2%    255,475,000 


Total $262,154,400 

The  operation  of  the  Pittman  Act,  coupled  with  the  removal  on 
May  6,  1919,  of  all  restrictions  against  the  export  of  silver, 
resulted  in  freeing  the  silver  market  from  the  control  of  war 
measures  and,  by  permitting  the  shipment  of  silver  to  other 
countries,  has  contributed  to  stabilize  the  price  and  encourage 
the  production  of  silver,  to  permit  the  use  of  that  metal  in 
settlement  of  trade  balances  adverse  to  the  United  States  and 
to  provide  silver  both  for  commercial  use  and  subsidiary  coin- 
age, since  the  Pittman  Act  prescribed  that,  for  every  silver 
dollar  sold  as  bullion, 'silver  equal  to  371.25  grains  of  pure 
silver  should  be  purchased  at  the  fixed  price  of  $1.00  per  ounce 
and  that  all  such  silver  in  excess  of  the  amount  re-sold  should 
be  coined  into  standard  silver  dollars. 

These  special  Certificates  of  Indebtedness  are  registered  in  the  name 
of  the  Federal  Reserve  Bank  to  which  they  are  issued  and  are 
in  such  denominations  as  are  required  in  each  case.  Since 
they  are  issued  for  a  specific  purpose,  they  are  not  receivable 
for  the  payment  of  any  taxes  nor  do  they  bear  the  cL^.^datioi] 
privilege. 


OTHEP 


LOAN 


DATED 


MATURITY 


RATE   OF 
INTEREST 


INTEREST    PAYABI 


in 


WAR-SAVINGS     SECURITIES 

two  categories: 
WAR-SAVINGS  CERTIFICATES  in 

three  series: 

(a)  Series  of  1918, 

(b)  Series  of  1919, 

(c)  Series  of  1920. 


Undated 


(2)  TREASURY     SAVINGS 
TIFICATES  in  two  serifes: 

(a)  Series  of  1919, 

(b)  Series  of  1920. 


CER- 


Undated 


Five  years  after  January 
1st  of  the  year  during 
which  they  are  issued. 


[Page  Nine] 


Five  years  after  January 
1st  of  the  year  during 
which  they  are  issued. 


4%  com- 
pounded 
quarterly 
for  the  aver- 
age period 
to  maturity 
of  the  certifi- 
cates issued 
during  the 
year 


At  maturity 


At  maturity- 


« 


ISSUES 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


Dn 


February  29,   1920, 
Series  of  1918: 
$743,502,199.62. 
Series    of     1919    and 
1920: 
$132,941,030.17. 

Total, 
$876,443,229.79 


Various     "War  Savings  Certifi- 
prices  cates    shall   be   ex- 

depend-         empt,    both    as    to 
ing    upon       principal  and  inter- 
the  est  from   aU   taxa- 

month  tion  now  or  here- 

when  after    imposed     by 

issued  the    United   States, 

any  State,  or  any 
of  the  posses- 
sions of  the  United 
States,  or  by  any 
local  taxing  au- 
thority, except  (a) 
estate  or  inherit- 
ance taxes,  and  (b) 
graduated  addi- 
tional income  taxes, 
commonly  known 
as  surtaxes,  and  ex- 
cess profits  and 
war-profits  taxes, 
now  or  hereafter 
imposed  by  the 
United  States,  upon 
the  income  or  prof- 
its of  individuals, 
partnerships,  asso- 
ciations, or  corpo- 
rations. The  inter- 
est on  an  amount  of 
bonds  and  certifi- 
cates, authorized  by 
said  act  of  Septem- 
ber 24,  1917,  the 
principal  of  which 
does  not  exceed  in 
the  aggregate 

$5,000,     owned     by 
any  individual,  part- 
nership, association, 
or  corporation,  shall 
be  exempt  from  the 
taxes  provided   for 
in        clause        (b) 
above." —  Treasury 
Department  Circu- 
lar  No.    94    (War- 
Savings       Circular 
No.   1),  dated  No- 
vember 15,  1917. 
The  exemption  of  the 
Treasury      Savings 
Certificates  is  iden- 
tical   with    that    of 
the       War-Savings 
Certificates    except 
that,       after       the 
phrase  "said  act  ap-  j 
proved     September 
24,        1917,"       the 
words  "and  amend- 
ments thereto,"  are 
inserted. — Treasury 
Department   Circu- 
lar No.    143,  dated 
July  1,  1919. 


United  States  War-Savings  Certificates  were  originally  authorized 
to  the  extent  of  $2,000,000,000  maturity  value  by  the  Act  of 
Congress   approved    September    24,    1917    (the    Second    Liberty 
Bond  Act),  which  limited  to  $100  the  amount  of  such  certifi- 
cates that  could  be  sold  at  any  given  time  to  any  one  person 
and  to  $1,000  the  amount  which  could  be  lawfully  held  by  any 
single  individual. 
This  act  was  subsequently  amended  by  the  Act  of  September  24, 
1918  (Supplement  to  Second  Liberty  Bond  Act),  which  increased 
the  amount  authorized  to  be  issued  to  $4,000,()00,000  and  substi- 
tuted  for   the   previous   limitation  a  provision   forbidding   any 
single  person  from  holding  at  any  one  time  "war  savings  cer- 
tificates of  any  one  series  to  an  aggregate  amount  exceeding 
$1,000." 
These  War-Savings  Certificates  were  first  offered  for  sale  by  the 
Secretary  of  the  Treasury  on  November  15,  1917.     When  one 
or  more  War-Savings  Certificate  stamps  of  the  same  series  as 
the   certificates   themselves   have   been   affixed,   the   certificates 
constitute  an  obligation  of  the  United  States.    Each  certificate 
contains  spaces  for  16  War-Savings  Certificate  stamps  and  each  ' 
stamp,  upon  being  affixed,  will  have  a  value  of  $5  upon  mar 
turity  of  the  certificate.    These  War-Savings  Certificate  stamps 
may  be  purchased  at  any  post  office  or  other  designated  agency 
at  prices  ranging  from  $4.12  for  January  to  $4.23  for  December 
of  the  year'  of  issue,  depending  upon  the  month  when  the  stamps 
are  bought.     These  prices  increase  one  cent  in  each  successive 
month  during  the  year  of  issue  and  are  based  upon  such  a  sum 
as  will,  together  with  interest  at  4%  compounded  quarterly  for 
the  average  period  to  maturity,  amount  to  $5  at  the  date  of 
maturity  of  the  certificate  itself. 
War  Thrift  cards  with  16  Thrift  Stamps  of  25  cents  each  affixed  may 
be  exchanged  at  the  same  agencies  for  one  War-Savings  Certifi- 
cate stamp  upon  payment  of  the  dilTerent  between  $4  and  thu 
current  price  of  issue  of  the  latter  stamps  during  that  month. 
In  every  instance  "the  name  of  the  owner  of  each  War-Savings 
Certificate  must  be  written  upon  such  certificate  at  the  time 
of  the  issue  thereof." 
These  certificates  may  be  registered  without  charge  at  any  post 
office  of  the  first,  second  or  third  class  under  such  regulations 
as  are  prescribed  by  the  Postmaster  General.    Certificates  thus 
registered  will  be  paid  at  maturity  only  at  the  post  office  where 
registered.    Unless  registered,  the  United  States  will  be  exempt 
from  liability  for  payment  of  any  certificate  made  to  an  indi- 
vidual other  than  the  rightful  owner. 
On  January  1st  of  the  fifth  year  after  the  year  of  issue,  holders  of 
War-Savings  Certificates  are  entitled  to  be  reimbursed  by  the 
Treasury  Department  or  by  any  money  order  post  office  at  the 
rate  of  $5  for  each  War-Savings  stamp  affixed  to  the  certifi- 
cate then  surrendered. 
These  certificates  may  be  redeemed  prior  to  their  maturity,  at  the 
option   of  the   holder,  at   prices   for   each  War-Savings   stamp 
affixed  ranging  from  $4.12  for  the  month  of  January  of  the  year 
of  issue  to  $4.71  for  the  December  immediately  preceding  the 
date  of  maturity. 
"War-Savings  Certificates  are  not  transferable  and  will  be  payable 
only   to   the   respective   owners   named   thereon,   except   in   the 
case  of  the  death  or  disability  of  such  owner."    Moreover,  they 
"will  not  be  receivable  as  security  for  deposits  of  public  money 
and  will  not  bear  the  circulation  privilege." 
So  great  was  the  demand  for  War-Savings  Securities  in  single  de- 
nominations  larger   than   $5   that   the   Treasury,   acting   under 
authority  of  the  Act  of  Congress  approved  September  24,  1917, 
as  amended,  announced  on  July  1,  1919   (Treasury  Department 
Circular  No.  143)  the  issue  of  War-Savings  Certificates  in  two 
additional  denominations  of  $100  and  $1,0(M)  maturity  value,  to 
be   known   as   "Treasury   Savings   Certificates."     This   issue   is 
the  counterpart  of  the  War-Savings  Certificates  and   forms   a 
portion    of   the    series   of   the    former,    having    "corresponding 
terms  as  to  increasing  sales  and  redemption  value  each  month 
and  the  same  period  of  maturity."    All  Treasury  Savings  Cer- 
tificates are  registered,  the  records  are  kept  at  the  Treasury 
instead  of  in  post  offices  and  redemption  is  made  by  the  Treas- 
ury  alone.     "Like  other  war-savings  certificates,   these  certifi- 
cates may  be  redeemed  prior  to  maturity,  but  they  differ  in  that 
they  cannot  be  redeemed  before  the  second  calendar  month  fol- 
lowing the  month  in  which  they  were  purchased." 
Comprehensive  accounts  of  War-Savings  and  Treasury  Savings  Cer- 
tificates will  be  found  in  the  Reports  of  the  Secretary  of  the 
Treasury  for  the  fiscal  years  ended  June  30,  1918,  and  1919, 
and  full  particulars  are  given  in  the  following  Treasury  De- 
partment Circulars,  Loans  and  Currency:    Nos.  94,  95,  96,  101, 
108,  126,  128,   1.30.  131,  143,  149,  169,   170,  171,  172.  173,  178, 
181  and  Supplement  to  Department  Circular  No.   172  of  De- 
cember 10,  1919. 
The  proceeds  derived  from  the  sale,  and  the  retirements,  of  War- 
Savings  securities  of  both  issues  are  approximately  as  follows: 

Receipts  Redemption 

1917 $  10,236,000  None 

1918 961,677,000        $  18,086.000 

1919 160,306,000  217,011,000 

1920  (to  March  12th)  .         17,219,000  38,990,000 


Total $1,149,138,000       $274,087,000 


OTHEB 


LOAN 

DATED 

MATURITY 

RATE   OF 
INTEREST 

1 

INTEREST    PAYAI 

POSTAL     SAVINGS     BONDS     in 

nineteen  series: 

First  Series       v 

July  1,  1911 

July  1,  1931 

2/2% 

" 

Second  Series 

January  1,  1912 

January  1,  1932 

2K% 

, 

Third  Series 

July  1,  1912 

July  1,  1932 

2/2% 

Fourth  Series 

January  1,  1913 

January  1,  1933 

2/2% 

Fifth  Series 

July  1,   1913 

July  1,  1933 

2/2% 

Sixth  Series 

January  1,  1914 

January  1,  1934 

2^2% 

Seventh  Series 

July  1,  1914 

July  1,  1934 

25^% 

Eighth  Series 

January  1,  1915 

January  1,  1935 

2/2% 

Ninth  Series 
Tenth  Series 

July  1,  1915 
January  1,  1916 

July  1,  1935 
January  1,  1936 

2/2% 
2^/4% 

January  1st  an 
July  1st 

Eleventh  Series 

July  1,  1916 

July  1,  1936 

-     2/2% 

Twelfth  Series 

January  1,  1917 

January  1,  1937 

2y2% 

Thirteenth  Series 

July  1,  1917 

July  1,  1937 

2/2% 

Fourteenth  Series 

January  1,  1918 

January  1,  1938 

2/2% 

Fifteenth  Series 

July  1,  1918 

July  1,  1938 

2/2% 

Sixteenth  Series 

January  1,  1919 

January  1,  1939 

2/2% 

Seventeenth  Series 

July  1,  1919 

July  1,  1939 

2K% 

,    Eighteenth  Series 

January  1,  1920 

January  1,  1940 

21^  % 

Nineteenth  Series 

July  1,  1920 

July  1,  1940 

Redeemable   at  par,   at 
the    pleasure    of    the 
United  States,     after 
one    year    from    the 
date  of  issue. 

2/2% 

SOLDIERS  AND  SAILORS'  CIVIL 

July  1,  1918 

July  1,  1928.     Redeem- 

3/2% 

January  1st  and 

RELIEF  BONDS. 

able,  at  the  pleasure  of 
the  United  States,  in 

from  the  date 
of  issue  if 

July  1st 

■  , 

whole   or  in  part,  on 
any    semi-annual    in- 

made on  an 
interest  date, 

1 

" 

terest    date    or    dates 
one  year  or  more  after 
the  termination  of  the 
war    with     Germany, 
upon    three    months' 

or,  if  issued 

at  any  other 

time,  from 

the  interest 

date  next  pre- 

• 

notice. 

ceding  the 

- 

date  of  issue. 

, 

i 

* 

[Page  Ten] 

1 

\ 

ISSUES  (Continued) 


AMOUNT  OUTSTANDING 


Price  at 
Which 
Issued 


EXEMPTION 


REMARKS 


On  August  17,  1920, 


$ 


41,900 

417,380 

854,860 

1,074,980 

1,116,880 

1,129,820 

872,240 

933,540 

865,500 

938,000 

906,700 

887,960 

718,800 

302,140 

198,180 

91,080 

103,140 

86,260 

72,800 


Total: 

$11,612,160 


Par 
for  all 

series  of 
Postal 

Savings 
bonds. 


On  July  1,  1920 
$194,800,     out 
a  total  issue  of 
$195,400. 


of 


Par 


"The  bonds  herein 
authorized  shall  be 
exempt  from  all 
taxes  or  duties  of 
the  United  States 
as  well  as  from  tax- 
ation in  any  form 
by  or  under  State, 
municipal,  or  local 
authority." — Act  ot 
Congress  approved 
June  25,  1910  (36 
United  States  Stat- 
utes at  Large, 
817). 


'Exempt  from  taxa- 
tion by  or  under 
State  or  municipal 
or  local  authority." 
— Treasury  De- 
partment Circular 
No.  115,  Division 
of  Loans  and  Cur- 
rency, dated  July  1, 
1918,  virhich  an- 
nounced the  issue 
of  these  bonds. 


Authorized  by  Section  10  of  the  Act  of  Congress  approved  June  25, 
1910,  which  established  the  Postal  Savings  depositories.  Postal 
Savings  bonds  were  first  issued  on  July  1,  1911.  This  Act  was 
subsequently  amended  or  supplemented  by  the  Acts  of  Con- 
gress approved  August  24,  1912,  September  23,  1914,  and  May 
18,   1916,  which   further  extended   the   Postal  Savings   system. 

Under  the  Postal  Savings  System  depositors  may  convert  their 
deposits,  together  with  accrued  interest,  on  or  as  of  January 
1st  or  July  1st  of  any  year,  into  Postal  Savings  bonds,  which 
are  issued  by  the  Secretary  of  the  Treasury  and  delivered  within 
a  month  or  more  after  January  1st  or  July  1st  directly  to  the 
applicants  who  must  be  depositors.  "They  may,  however,  be 
sold  or  assigned  to  any  person." 

Postal  Savings  bonds  are  issued  in  two  forms:  (I)  Coupon  bonds 
to  bearer,  and  (2)  Registered  bonds — principal  and  interest — 
both  in  denominations  of  .$20,  $100  and  $500  only,  notwith- 
standing that  the  .Act  of  June  25.  1910,  authorized  the  issuance 
of  bonds  in  denominations  of  $20,  $40,  $60,  $80,  $100  and  $500. 

Coupon  bonds  may  be  exchanged  for  registered  bonds  without 
charge,  but  registered  bonds  cannot  be  exchanged  for  coupon 
bonds. 

Postal  Savings  bond  are  issued  on^  or  as  of,  January  1st  and  July  1st 
of  each  year  and  are  "redeemable  at  the  pleasure  of  the  United 
States  after  one  year  from  the  date  of  their  issue"  at  par. 
These  bonds  possess  an  extraordinary  feature  in  that  any  holder 
who  desires  to  dispose  of  them  may  make  application  to  the 
Board  of  Trustees  of  the  Postal  Savings  System,  Washington, 
which  will  purchase  from  him  all  such  bonds  at  par,  but  not 
with  accrued  interest. 

These  bonds  are  receivable  as  security  for  Postal  Savings  deposits, 
but  not  for  deposits  of  public  money  or  for  the  issue  of  circu- 
lating notes  by  National  or  Federal  Reserve  banks. 

The  Secretary  of  the  Treasury  is  the  Transfer  Agent  and  the  trans- 
fer books  are  closed  from  June  1st  to  June  30th  and  from 
December  1st  to  December  31st  of  each  year. 


These  bonds  were  authorized  by  Article  IV  of  the  Act  of  Congress 
approved  March  8,  1918,  which  was  officially  designated  as  "the 
Soldiers  and  Sailors'  Civil  Relief  Act."  This  article  "provides 
that  the  Government  will  protect  payments  of  insurance  pre- 
miums in  commercial  companies  on  certain  policies  on  the  lives 
of  men  in  the  military  and  naval  services  to  the  extent  of  $5,000 
insurance  on  any  one  life.  The  law  stipulates  that  premiums 
due  life  insurance  companies  in  such  instances  shall  be  certi- 
fied by  the  Bureau  of  War  Risk  Insurance  to  the  Secretary 
of  the  Treasury,  and  directs  that,  to  secure  the  payment  of  such 
premiums,  bonds  of  the  United  States  shall  be  issued  by  the 
Secretary  and  registered  in  the  names  of  the  respective 
insurers." 

These  bonds  are  issued  in  registered  form  only,  in  denominations 
of  $100,  $.500  and  $1,000,  this  registration  being  made  in  the 
manner  prescribed  by  the  aforesaid  Article  IV.  Bonds  thus 
registered  will  be  delivered  to  the  proper  officer  of  each  insurer 
upon  the  monthly  difference  reports  certified  to  the  Secretary 
of  the  Treasury  by  the  Bureau  of  War  Risk  Insurance  and 
to  the  amount  of  that  multiple  of  $100  nearest  the  monthly  dif- 
ference thus  certified  in  the  case  of  the  insurer,  but  not  for  less 
than  $50.  Other  conditions  attached  to  this  issue  are  fully 
covered  in  Treasury  Department  Circular  No.  115. 

These  Soldiers  and  Sailors'  Civil  Relief  bonds  are  subject  to  the 
Federal  Income  Tax.  They  are  not  receivable  as  security  for 
deposits  of  public  money  or  Postal  Savings  deposits  and  do 
not  bear  the  circulation  privilege. 


EXPLANATORY  NOTES 

(A)  CONCERNING  UNITED  STATES  GOVERNMENT 

BONDS 

1.  The  principal  and  interest  of  all  United  States  bonds  are 
both  payable  in  United  States  gold  coin  of  the  same  stan- 
dard of  weight  and  fineness  as  that  prevailing  at  the  date 
of  issue. 

2.  All  coupons  are  payable  to  the  bearer.  Interest  on  reg- 
istered bonds,  on  the  other  hand,  is  paid  by  Government 
check  directly  to  the  person  in  whose  name  the  bonds  are 
registered. 

3.  "Bonds,  notes  and  Treasury  certificates  of  indebtedness  of 
the  United  States,  of  any  issue,  including  outstanding  in- 
terim certificates  or  receipts  for  payments  therefor,"  will 
be  accepted  at  par  as  security  for  the  deposit  of  public 
money  in  National  and  Federal  Reserve  banks,  as  well  as 
for  Postal  Savings  deposits.— Treasury  Department  Cir- 
cular No.  176,  Public  Moneys,  December  31,  1919.  Also  Reg- 
ulations governing  the  deposit  of  Postal  Savings  Funds  in 
banks.  Section  8,  2  (a). 

4.  The  following  are  available  to  National  and  Federal  Re- 
serve banks  as  security  for  the  issue  of  circulating  notes: 

4%  Loan  of  1925, 

2%  Consols  of  1930, 

Panama  Canal  Loan,  2%,  Series  of  1916-1936,  and 

Panama  Canal  Loan,  2%,  Series  of  1918-1938. 

None  of  the  other  issues  of  Government  bonds  enu- 
merated in  this  list  bear  the  circulation  privilege. 

(B)  LIBERTY  BONDS  AND  VICTORY  LIBERTY  NOTES. 
1.  EXEMPTIONS  FROM  CERTAIN  TAXES,  FEDERAL  OR 

OTHERWISE. 

(a)  The  following  issues  are  exempt,  both  as  to  principal 

and  interest,  to  an  unlimited  amount,  from  all  taxation, 
except  Estate  or  Inheritance  taxes,  nor  or  hereafter 
imposed  by  the  Federal  Government,  any  of  the  pos- 
sessions of  the  United  States,  any  State  or  other  local 
taxing  authority — municipality  included : 

First  Liberty  Loan,  3^%  bonds  of  1932-1947,  and 
Victory  Liberty  Loan,  394%  notes  of  1922-1923. 

(b)  All  other  Liberty  Loan  bonds  bearing  interest  at  the 
rate  of  4%  and  4k % — whether  convertible  or  converted 
— as  well  as  the  Victory  Liberty  Loan,  4%%  notes,  are 
exempt,  both  as  to  principal  and  interest,  from  all 
taxation  now  or  hereafter  imposed  by  the  Federal  Gov- 
ernment, any  of  the  possessions  of  the  United  States, 
any  State  or  by  any  local  taxing  authority,  except 

(1)  Estate  or  Inheritance  taxes,  and 

(2)  Surtaxes,  Excess-Profits  taxes  and  War-Profits 
taxes,  now  or  hereafter  imposed  by  the  United 
States  upon  the  income  or  profits  of  individuals, 
partnerships,  associations  or  corporations. 

In  other  words,  all  4%  and  4M%  Liberty 
Loan  bonds,  vi'hether  convertible  or  converted, 
and  all  494%  Victory  Liberty  I^an  notes  are 
exempt  from  the  normal  Federal  Income  tax, 
as  well  as  from  all  taxation  by  any  State  or 
other  local  taxing  authority,  but  they  are  not 
exempt  from  Federal  Income  Surtaxes  or  from 
Estate,  Inheritance,  Excess-Profits  or  War- 
Profits  taxes. 

(c)  In  addition  to  the  foregoing  exemptions,  some  of  the 
4%  and  4M%  Liberty  l^oan  bonds  and  other  Govern- 
ment obligations  are  entitled  to  certain  limited  exemp- 
tion from  Federal  Income  Surtaxes  and  from  Excess- 
Profits  and  War-Profits  taxes.  These  additional 
exemptions  apply  specifically  to  the  interest  derived 
from  the  following  amounts  of  principal — or  par  value 

— of  the  issues  enumerated  below: 
$5,000  principal  in  the  aggregate  of 

First  Liberty  Loan,  Converted  4%  bonds  of  1932- 
1947; 

First  Liberty  Loan,  Converted  4M%  bonds  of  1932- 
1947; 

First  Liberty  Loan,  Second  Converted  4%%  bonds 
of  1932-1947  • 

Second  Liberty  Loan,  4%  Convertible  bonds  of 
1927-1942* 

Second  Liberty  Loan,  Converted  4M%  bonds  of 
1927-1942; 

Third  Liberty  Loan,  4M%  bonds  of  1928; 

Fourth  Liberty  Loan,  4M%  bonds  of  1933-1938; 

Treasury  Certificates  of  Indebtedness,  and 

United  States  War-Savings  Certificates. 

(Section   7   of  the  Act   of   Congress   approved 
September  24,  1917— the  Second  Liberty  Bond 
Act — as  amended  and  supplemented.) 
$30,000  principal  in  the  aggregate  of 

First  Liberty  Loan,  Second  Converted  4M%  bonds 
of  1932-1947  untU  the  expiration  of  two  years 
after  the  termination  of  the  war  with  Germany 
as  fixed  by  proclamation  of  the  President. 


(Section  1,  Paragraph    (3)   of  the  Act  of  Con- 
gress approved  September  24,  1918 — Supplement 
to  Second  Liberty  Bond  Act.) 
$30,000  principal  in  the  aggregate  of 

Fourth  Liberty  Loan,  4^4%  bonds  of  1928  until  two 
years  after  the  termination  of  the  war  with 
Germany  as  fixed  by  proclamation  of  the 
President. 

(Section  1,  Paragraph   (1)  of  the  Act  of  Con- 
gress   approved    September    24,    1918 — Supple- 
ment to  Second  Liberty  Bond  Act.) 
$30,000  principal  in  the  aggregate  of 

First  Liberty  Loan,  Converted  4%  bonds  of  1932- 

1947, 
First  Liberty  Loan,  Converted  4M%  bonds  of  1932- 

1947, 
First  Liberty  Loan,  Second  Converted  4M%  bonds 

of  1932-1947, 
Second  Liberty  Loan,  4%  Convertible  bonds  of  1927- 

1942, 
Second    Liberty    Loan,    Converted   4M%    bonds   of 

1927-1942 
Third  Liberty  Loan,  4M%  bonds  of  1928.  and 
Fourth  Liberty  Loan,  4M%  bonds  of  1933-1938. 

This  exemption  applies  to  the  interest  received, 
on  and  after  January  1,  1919,  and  until  the  expi- 
ration of  five  years  after  the  termination  of  war 
with  Germany  as  fixed  by  Presidential  proclama- 
tion, on  $30,000  principal  of  the  issues  specified 
above. 

(Section  2  (a)  of  the  Act  of  Congress  approved 
March  3,  1919— the  Victory  Liberty  Loan  Act.) 
$45,000  principal  in  the  aggregate  of 

First   Liberty   I^oan,  Converted  4%  bonds  of  1932- 

1947, 
First  liberty  Loan,  Converted  4M%  bonds  of  1932- 

1947, 
Second  Liberty  Loan,  4%  Convertible  bonds  of  1927- 

1942, 
Second    Liberty    Loan,    Converted   4M%    bonds   of 

1927-1942,  and 
Third  Liberty  Loan,  4M%  bonds  of  1928. 

This  exemption  applies  to  the  interest,  received 
after  January  1,  1918,  and  until  two  years  after 
the  termination  of  the  war  with  Germany  as  fixed 
by  proclamation  of  the  President,  on  $30,000  par 
value  of  the  bonds  above  specified.  This  exemption 
is,  moreover,  conditional  upon  the  holder's  having 
made  an  original  subscription  to  two-thirds  as  many 
($30,000)  bonds  of  the  Fourth  Liberty  Loan  and 
upon  his  having  held  those  bonds  continuously  from 
the  time  of  his  original  subscription  until  the  date 
of  his  tax  return. 

(Section  1,  Paragraph   (2)   of  the  Act  of  Con- 
gress approved  September  24,  1918 — Supplement 
to  Second  Liberty  Bond  Act.) 
$20,000  principal  in  the  aggregate  of 

First   Liberty  I»an,  Converted  4%   bonds  of  1932- 

1947, 
First  Liberty  Loan,  Converted  4M%  bonds  of  1932- 

1947, 
First  Liberty  Loan,  Second  Converted  4M%  bonds 

of  1932-1947, 
Second  Liberty  Loan,  4%  Convertible!  bonds  of  1927- 

1942, 
Second  Liberty  Loan,  Converted  4M%  bonds  of  1927- 

1942, 
Third  Liberty  Loan,  4M%  bonds  of  1928,  and 
Fourth  Liberty  Loan,  4M%  bonds  of  1933-1938. 

This  exemption  applies  to  the  interest  received, 
on  and  after  January  1,  1919,  on  $20,000  par  value 
of  the  bonds  thus  specified.  Furthermore,  it  is  con- 
ditional upon  the  holder's  having  made  an  original 
subscription  to  one-third  as  many  notes  (either 
494%  or  394%  or  both)  of  the  Victory  Liberty 
Loan  and  upon  his  having  held  such  an  amount  of 
these  notes  continuously  from  the  time  of  his  orig- 
inal subscription  until  the  date  of  his  tax  return. 
No  limitation  as  to  time  was  placed  upon  this  ex- 
emption which,  consequently,  terminates  only  upon 
the  maturity  of  the  notes  of  the  Victory  Liberty 
Loan. 

(Section  2  (b)  of  the  Act  of  Congress  approved 
March  3,  1919— the  Victory  Liberty  Loan  Act.) 

$160,000  principal  (or  par  value)  of  Liberty  Loan  bonds 
constitutes  the  total  possible  amount,  the  interest  on 
which  can  be  exempt  from  Federal  Income  Sur- 
taxes, Excess-Profits  and  War-Profits  taxes  subject 
to  the  restrictions  enumerated  above. 

2.  EXEMPTION  FROM  TAXES  OF  ALL  LIBERTY  LOAN 
BONDS  AND  VICTORY  LIBERTY  NOTES  IF  HELD  BY 
FOREIGNERS.  ,.,.., 

All  "bonds,  notes,  and  certificates  of  indebtedness  oi 
the  United  States  and  bonds  of  the  War  Finance  Cor- 


[Page  Eleven] 


poration  shall,  while  beneflolally  owned  by  a  non- 
resident alien  individual,  or  a  foreign  corporation, 
partnership,  or  association,  not  engaged  in  business  in 
the  United  States,  be  exempt  both  as  to  principal  and 
interest  from  any  and  all  taxation  now  or  hereafter 
imposed  by  the  I'nited  States,  any  State,  or  any  of  the 
possessions  of  the  United  States  or  by  any  local  taxing 
authority."    *  ,  ,.      .. 

(Section  4  of  the  Act  of  Congress  approved  IMarch 

3,  1919— the  Victory  Liberty  Loan  Act— amending 
Section  3  of  the  Fourth  Liberty  Bond  Act  ap- 
proved July  9.  1918.) 

3.  CKRTAIN  LIHKKT^  BONDS  AND  VKTORY  LIUKKTY 
NOTKS  ARE  RFXKIVABLK  AT  PAR  IN  PAYiMKNT  (>F 
FEDERAL  ESTATE  AND  INHERITANCE  TAXES. 

.All  iW7c  Liberty  Loan  bonds  and  all  4%7o  Victory 
Liberty  notes  "which  have  been  owned  by  any  person 
continuously  for  at  least  six  months  prior  to  the  date 
of  his  death,  and  which  upon  such  date  constitute  part 
of  his  estate,  shall,  under  rules  and  regulations  pre- 
scril)ed  by  the  Secretary  of  the  Treasury,  be  receiv- 
able by  the  I'nited  States  at  par  and  accrued  interest 
in  payment  of  any  estate  or  inheritance  taxes  imposed 
by  the  I'nited  States,  under  or  by  virtue  of  any  pres- 
ent or  future  law  upon  such  estate  or  the  inheritance 
thereof." 

(Section  6  of  the  Act  of  Congress  approved  April 

4,  1918— the  Third  Liberty  Bond  Act— supple- 
mented by  Section  1  (d)  of  the  Act  of  March  3, 
1919 — the  Victory  Liberty  Loaji  Act.) 

4.  CONVERSION  PRIVILEGES. 

The  First  Liberty  Loan,  Converted  4%  bonds  of  1932- 
1947  are  convertible  into  the  First  Liberty  Loan, 
Converted  4M7o  bonds  of  1932-1947. 

The  Second  Liberty  Loan,  4%  Convertible  bonds  of 
1927-1942  are  convertible  into  the  Second  Liberty 
Loan,  Converted  4M%  bonds  of  1927-1942. 

The  Victory  Liberty  Loan,  4M%  Convertible  notes  of 
1922-1923  are  convertible  into  the  Victory  Lib- 
erty Loan,  3?47o  Convertible  notes  of  1922-1923,  and 
vice  versa. 

"No  other  conversion  privileges  are  extant." — Treasury 
Department,  Form  L  &  C  400,  revised  June,  1920. 

Whenever  an  issue  of  Liberty  I^oan  bonds  is  converted 
into  another  issue,  the  terms  and  features  of  the 
former  become  identical  with  those  of  the  latter, 
except  that  the  bonds  thus  converted  retain 

(1)  their  original  interest  dates, 

(2)  their  original  date  of  maturity  of  the  principal, 
and 

(3)  their  original  terms  of  redemption. 

5.  BOND  PURCHASE  FUND. 

By  virtue  of  SMtion  6  of  the  Act  of  Congress  approved 
April  4,  1918— the  Third  Liberty  Bond  Act — which 
amended  the  Second  Liberty  Bond  Act,  the  Secretary 
of  the  Treasury  was  authorized  to  purchase,  "from 
time  to  time,  until  the  expiration  of  one  year  after 
the  termination  of  the  war,"  bonds  issued  under  au- 
thority of  the  Second  and  Third  Liberty  Bond  Acts, 
including  converted  bonds,  at  an  average  cost  during 
any  period  of  twelve  months  not  to  "exceed  par  and 
accrued  interest."  It  was  specifically  provided  that 
"The  par  amonnt  of  bonds  of  any  such  series  which  may 
be  purchased  in  the  twelve  months'  period  beginning 
on  the  date  of  issue  shall  not  exceed  one-twentieth  of 
the  par  amoimt  of  bonds  of  such  series  originally  is- 
sued, and  in  each  twelve  months'  period  thereafter, 
shall  not  exceed  one-twentieth  of  the  amount  of  the 
bonds  of  such  series  outstanding  at  the  beginning  of 
such  twelve  months'  period." 

The  Bond  Purchase  Fimd  was  subsequently  made  ap- 
plicable to  the  Fourth  Liberty  I»an  and  to  the  3%% 
and  4%%  notes  of  the  Victory  Liberty  Loan,  but  not 
to  the  First  Liberty  Loan,  3^6%  bonds  of  1932-1947 
(unconverted).  All  bonds  purchased  were  promptly 
retired  and  cancelled,  the  purpose  for  Which  this 
fund  was  created  being  "to  maintain  the  stability  of 
the  market  for  Government  securities."  The  Bond 
Purchase  Fiuid  ceased  to  be  operative  on  July  1,  1920, 
when  it  was  superseded  by  the  Cumulative  Sinking 
Fund. 

6.  CUMULATIVE  SINKING  FUND. 

Section  6  (a)  of  the  Act  of  Congress  approved  March 
3.  1919— the  Victory  Liberty  Loan  Act — created  a 
Cumulative  Sinking  Fund  for  the  retirement  of  the 
bonds  of  the  First,  Second,  Third  and  Fourth  Liberty 
Loans — both  convertible  and  converted — and  the  notes 
of  the  Victory  Liberty  Loan  either  by  payment  at  ma- 
turity or  by  redemption  or  purchase  prior  thereto. 
"The  average  cost  of  the  bonds  and  notes  purchased 
shall  not  exceed  par  and  accrued  interest"  and,  more- 


over, all  "bonds  and  notes  purchased,  redeemed,  or  paid 
out  of  the  sinliing  fund  shall  be  canceled  and  retired 
and  shall  not  be  reissued." 

This  Section  provided  that  "For  the  fiscal  year  be- 
ginning July  1,  1920,  and  for  each  fiscal  year  there- 
after, initil  all  such  bonds  and  notes  are  retired  there 
is  hereby  appropriated,  out  of  any  money  in  the  Treas- 
ury not  otherwise  appropriated,  for  the  purposes  of 
such  sinking  fund,  an  amount  equal  to  the  sum  of  (1) 
2%  per  centum  of  the  aggregate  amount  of  such  bonds 
and  notes  outstanding  on  July  1,  1920,  less  an  amoimt 
equal  to  the  par  amount  of  any  obligations  of  foreign 
Governments  held  by  the  I'nited  States  on  July  1, 
1920,  and  (2)  the  interest  which  would  have  been 
payable  during  the  fiscal  year  for  which  the  appro- 
priation is  made  on  the  lionds  and  notes  purchased, 
redeemed,  or  paid  out  of  the  sinking  fund  during  such 
year  or  in  previous  years." 

Section  6  (b)  of  this  same  Act  repealed  the  Revised 
Statutes  which  had  created  a  Sinking  Fiuul  consisting 
of  "a  permanent  annual  appropriation  of  1  per  cen- 
tum of  the  entire  debt  of  the  United  States,"  for  the 
reason  that  this  former  Sinking  Fund  "had  proved 
unworkable  and  resulted  in  nothing  more  or  less  than 
a  bookkeeping  account." 

7.  TRANSFER  AGENT  AND  TRANSFER  BOOKS. 

(a)  The  Transfer  Agent  for  all  issues  of  Liberty  Loan 
bonds  and  Victory  Liberty  Loan  notes  is  the  Office  of 
the  Secretary  of  the  Treasury,  Division  of  Loans  and 
Currency,  Treasury  Department,  Washington,  D.  C. 

(b)  Transfer  Books. 

(1)  For  the  First  Liberty  Loan,  including  the 

First    Liberty    Loan,    ^%%    bonds    of    1932-1947 

(known  by  the  short  title  of  "First  3^^'s"), 
First  Liberty  Loan,  Converted  4%  bonds  of  1932- 

1947    (known  as  the  "First  4's"), 
First   Liberty   Loan,    Converted    4M%    bonds    of 

1932-1947    (known   as   the   "First   4M's")    and 
First  Liberty  Loan,  Second  Converted  4M%  bonds 

of  1932-1947    (known    as    the    "First    Second 

4M's"), 
the  transfer  books  are  closed  from  the  close  of 
business  on  May  1.5th  to  the  opening  of  business 
on  June  16th  and  from  the  close  of  business  on 
November  15th  to  the  opening  of  business  on  De- 
cember 16th  of  each  year. 

(2)  For  the  Second  Liberty  Loan,  including  the 
Second    Liberty    Loan,   4%    Convertible    bonds    of 

1937-1942  (known  as  the  "Second  4's")  and  the 
Second   Liberty   Loan,   Converted   4M%    bonds   of 

1927-1942  (known  as  the  "Second  4M's"), 
the  transfer  books  are  closed  from  the  close  of 
business  on  April  15th  to  the  opening  of  business 
on  May  16th  and  from  the  close  of  business  on 
October  15th  to  the  opening  of  business  on  No- 
vember 16th  of  each  year. 
(3)  For  the  Third  Liberty  I.oan,  4M%  bonds  of  1928 
(known  as  the  "Third  4M's"),  the  transfer  books 
are  closed  from  the  close  of  business  on  February 
15th  to  the  opening  of  business  on  March  16th 
and  from  the  jclose  of  business-^on  August  15th 
to  the  opening  of  business  on  September  16th  of 
each  year. 

(4)  For  the  Fourth  Lihertv  Loan,  4M%  bonds  of  1933- 

1938  (known  as  the  "Fourth  4M's").  the  transfer 
books  are  closed  from  the  close  of  business  on 
March  15th  until  the  opening  of  business  on  Anril 
16th  and  from  the  close  of  business  on  Seotemher 
15th  until  the  opening  of  business  on  October  16th 
of  each  year. 

(5)  For  the  Victory  Liberty  Loan,  including  the 
Victorv  Liberty  Loan,  4?4%  Convertible  notes  of 

1922-1923     (known    as    the    "Victory    4?4's") 

and  the 
Victory  Libertj-  I>oan,  394%   Convertible  notes  of 

1922-1923  (known  as  the  "Victory  3%'s"), 
the  transfer  books  are  closed  from  the  close  of 
business  on  May  15th  until  the  opening  of  busi- 
ness on  June  16th  and  from  the  close  of  business 
on  November  15th  until  the  opening  of  business 
on  December  16th  during  the  years  1920,  1921  and 
1922.  The  transfer  books  will  also  be  closed  at 
the  close  of  business  on  April  20,  1923,  prepara- 
tory to  the  final  payment  of  interest  on  May  20, 
1923. 

The  above  information,  together  with  the  vari- 
ous Rules  and  Regulations  concerning  transac- 
tloils  in  liberty  Bonds  and  Victory  Notes,  will  be 
found  in  Treasury  Department  Circular  No.  141, 
Loans  and  Currency,  dated  September  15,  1919. 


W.  B.  HiBBs  AND  Company 


MEMBERS 

NEW  YORK  STOCK  EXCHANGE 
BOSTON  STOCK  EXCHANGE 
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HiBBS  Building 
Washington.  D    C. 


'TT^HE    information    herein    contained    has 
-'-  been  taken  from  authoritative  sources  and 


is  believed  to  be  correct, 
hovyever,  guaranteed. 


Its  accuracy  is  not, 


August  18,  1920. 


I 


W.  F.  WBEfiTS  CO.  WA8HIMT0N  D.  C- 


